Asset manager Fidelity Investments today launched the Fidelity Solana Fund (FSOL) spot exchange-traded fund (ETF), easing institutional access to SOL, the native coin of the Solana blockchain.
Fidelity’s FSOL ETF goes live
Today, Fidelity Investments unveiled its third crypto-focused ETF with the launch of the FSOL. Notably, Fidelity already has a Bitcoin (BTC) and Ethereum-based (ETH) ETF in the market.
It should be highlighted that yesterday, Fidelity filed Form 8-A with the US Securities and Exchange Commission (SEC). The new rules under President Donald Trump’s administration allow ETF issuers a quick launch by avoiding extensive documentation requirements.
According to data from Coingecko, Solana is currently the sixth-largest digital asset, holding a total market cap of $76.7 billion. Solana competes with the leading smart contract platform Ethereum, which currently has a market cap of $371.7 billion.
A key highlight of Fidelity’s latest offering is that FSOL will waive both staking-reward fees and expense ratio until May 18, 2026. After that, the ETF will charge a 15% fee on staking rewards and a 0.25% expense ratio.
To explain, the staking feature allows investors to ‘stake’ or lock their SOL coins on the Solana smart contract. This way, they validate transactions and secure the blockchain, and as compensation, these stakers earn rewards in the form of SOL.
Notably, Fidelity will take services of California-based Anchorage Digital Bank, BitGo Trust Company, and Coinbase Custody to custody and stake Solana tokens through node operators.
Interestingly, Fidelity has made it clear that it is ready to stake the entirety of its portfolio. Only SOL reserved for operational activities, such as expenses, liquidity requirements, and redemptions, will be excluded from staking.
Altcoin ETF space is heating up
Unlike the Bitcoin (BTC) ETF space, which currently comprises assets worth more than $122 billion, ETFs for altcoins such as Ethereum, XRP, and Solana are still relatively new.
However, with asset management juggernauts like Fidelity Investments entering the altcoin ETF space, expect things to get competitive. BlackRock, the issuer of IBIT, the largest Bitcoin ETF by assets, is still absent from the SOL ETF race. For how long, it remains to be seen.
