Fidelity Backs Solana

Fidelity has filed an updated application with the U.S. Securities and Exchange Commission (SEC) to launch a spot exchange-traded fund (ETF) based on Solana (SOL). According to the filing, the company plans to stake nearly 100% of its holdings, potentially earning investors around 7% annually. A small portion of the assets will remain liquid to support the fund’s day-to-day operations.

The goal of the project is to give investors easy access to Solana through traditional brokerage accounts. Fidelity is also developing its own price index for the ETF. This initiative is part of the company’s broader expansion into digital assets — recently, Fidelity added Solana trading to its platforms, including Fidelity Crypto and Fidelity Digital Assets.

Solana stands out for its speed and low transaction costs. The network processes around 60,000 transactions per minute, with fees amounting to mere fractions of a cent — compared to roughly 50 cents per transaction on Bitcoin or Ethereum.

Competition in the market is heating up as well. Bitwise recently launched its own Solana Staking ETF, which attracted $69.5 million on its first day of trading. Grayscale has converted its Solana Trust into an ETF, and the SEC has already approved a similar product from 21Shares.

All signs point to 2025 becoming a breakthrough year for altcoin-based ETFs.