Key Insights:
- Fidelity Solana ETF filed with the US SEC to confirm its launch on Tuesday.
- The issuer waives a 0.25% management fee on its Solana ETF for six months, along with staking fees, until $1 billion of assets.
- Solana (SOL) price rebounded 6% to $137.89 from an intraday low ahead of the ETF launch.
Asset manager Fidelity Investments on Tuesday confirmed its Solana ETF (FSOL) launch today. It highlighted management fees as well as staking fees waiver on its FSOL for six months.
This challenges other SOL ETF issuers that have waived fees for only three months and charge staking fees for SOL staking rewards. Will Solana price rebound?
Fidelity Solana ETF (FSOL) Starts Trading, Waives Fee for 6 Months
According to the latest 424B3 filing with the US SEC on November 18, Fidelity Investments confirmed its launch today.
As compared to other issuers, the issuer has decided to waive a 0.25% management fee for its Solana ETF for six months. This fee waiver would help draw investors towards its ETF.
In addition, the issuer will also bear the staking fee on all staking rewards generated from the first $1 billion of assets under management. The total amount of the staking fee is equal to 15% of all staking rewards received by the trust.
Similar to Bitwise SOL Staking ETF (BSOL), the FSOL would stake up to 100% of SOL. Notably, there is no minimum percentage that the trust is required to stake.
Fidelity will also seek to use liquid staking tokens (LSTs) or purchase staked SOL from third parties as alternative methods of generating staking rewards in the future.
Fidelity Solana ETF (FSOL) Gains Automatic Approval
The Fidelity Solana ETF becomes auto-effective with an 8-A filing, despite the reopening of the US SEC after the government shutdown ended.
It also gained certification from NYSE Arca to list shares under the ticker symbol FSOL. “Easily the biggest asset manager in this category with BlackRock sitting out,” said Bloomberg’s senior ETF analyst Eric Balchunas.
ETF Prime host Nate Geraci revealed that the world’s third-largest asset manager, Fidelity, now offers Solana exposure to both direct SOL and spot ETFs.
All Eyes on Solana Price Rebound
Solana price rebounded 6% after falling 9% over the last 24 hours, with the price currently trading at $137.89. SOL crashed by more than 20% over the past week despite continued inflows into SOL ETFs.
The 24-hour low and high were $129.02 and $142.34, respectively. Trading volume has increased by 78% in the last 24 hours, indicating a rise in interest among traders ahead of the Fidelity Solana ETF launch.
CoinGlass data showed buying sentiment in the derivatives market in the past few hours. However, the total SOL futures open interest fell 1.16% to $7.28 billion in the last 24 hours.
The 4-hour SOL futures open interest fell nearly 0.52%. It jumped 0.36% on CME but dropped 1.39% on Binance, following a 2.45% rise in the last 24 hours.