TradFi giant Fidelity is accelerating its Solana ETF plans, amending its S-1 filing to potentially launch within 20 days, hot on the heels of the successful debuts from Bitwise and Grayscale.

Fidelity's "Auto-Effective" Strategy

Feeling the pressure after being left on the sidelines, Fidelity has updated its S-1 registration statement for its spot Solana ETF. By removing the “delaying amendment,” the fund is now on a path to go “auto-effective” in 20 days, a strategy also adopted by VanEck and Canary Capital. This move could see a new wave of Solana ETFs go live by mid-November, pending exchange approvals.

I was “pleased to see” companies taking advantage of the 20-day statutory waiting period to get listed despite the Government shutdown.

This approach has received tacit approval from SEC Chair Paul Atkins, who praised the legal mechanism that allows funds to get listed even during a government shutdown, suggesting a smoother path forward for these products.

Blockbuster Debut for Spot Solana ETFs

The first spot Solana ETFs have found a strong appetite on Wall Street. In just two days, Bitwise’s $BSOL and Grayscale’s $GSOL have attracted over $117 million in fresh capital, adding to their initial seed of $324 million.

Key ETF Launch Metrics

Within two days, spot Solana ETFs have seen over $150M in trading volume and now hold over $430M in Assets Under Management (AUM). Bitwise's $BSOL alone saw over $56M in volume on its first day.

Upward trending chart showing the successful trading volume and AUM growth for new Solana ETFs
Solana ETFs have seen impressive trading volumes and inflows since their launch.

Have Solana DATs Muted ETF Inflows?

While the ETF launch has been a clear success, some analysts argue that the rise of Solana-based Digital Asset Treasuries (DATs) may have siphoned off some institutional capital. Before the ETF approvals, DATs became an alternative vehicle for TradFi players to gain exposure to crypto.

Galaxy Digital's Head of DeFi has argued that “$SOL DATS are superior to ETFs in every single way,” citing their ability to stake 100% of holdings and access better leverage. However, this argument is partially countered by the fact that Bitwise's $BSOL is, in fact, staking 100% of its $SOL holdings via the Helius Validator, bridging the gap between the two investment vehicles.