Fidelity has submitted an updated registration for its proposed Solana ETF, signaling a clear intent to expedite the product’s launch. By removing a procedural delay clause and outlining a comprehensive staking strategy, the firm is positioning its fund to meet growing institutional demand for regulated digital assets beyond Bitcoin and Ethereum.

Staking Strategy Aims to Enhance Returns

In its fourth amendment to the S-1 filing with the U.S. Securities and Exchange Commission (SEC), Fidelity removed a clause that typically slows regulatory timelines by preventing automatic effectiveness. This adjustment clears the path for a faster review and potential approval from the SEC. The filing also introduced a plan to use a proprietary pricing index maintained by Fidelity Product Services.

A core component of the proposed ETF is its plan to stake nearly all of its Solana (SOL) holdings through a network of validators to generate rewards. Only a small portion of the fund’s SOL will be kept liquid to manage daily operations. This strategy not only offers potential yield benefits for investors but also enhances the fund’s participation in the Solana network, aligning its structure with the blockchain’s proof-of-stake design.

The Race for Altcoin ETFs Heats Up

Fidelity’s move comes as competition in the Solana ETF space intensifies. Bitwise recently launched its Solana Staking ETF (BSOL) on the New York Stock Exchange, which saw a strong debut with over $69 million in inflows and significant trading volume shortly after its launch. The fund’s performance marked it as one of the year’s most successful ETF debuts.

Similarly, Grayscale transitioned its Solana Trust into a spot Solana ETF (GSOL) under SEC-approved rules for staking. The fund holds over 525,000 SOL, with more than 74% of its assets dedicated to earning staking returns. These developments highlight a clear trend among issuers to secure an early foothold in the emerging altcoin ETF market.

Regulatory Clarity and Expanding Focus

The recent surge in staking-based crypto products was fueled by an SEC ruling in August that allowed for protocol staking without classifying the underlying asset as a security. This regulatory clarity has given firms the confidence to launch new and more complex crypto ETFs. The industry’s focus is already expanding, with speculation growing around other potential altcoin products.

Bitwise has publicly expressed confidence in the eventual approval of an XRP ETF, projecting it could attract $1 billion in assets soon after launching. While the SEC hasn’t provided specific guidance on XRP, ongoing legal developments and recent ETF approvals are fostering optimism for a wider range of compliant crypto investment vehicles by 2026. Fidelity’s aggressive push for a Solana ETF represents a pivotal step in this evolution, signaling stronger momentum for the integration of digital assets into mainstream finance.