TLDR
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Fidelity files Solana ETF for Cboe BZX listing
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ETF tracks real time Solana price using VWMP index
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Fund holds Solana with cold wallet security
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Staking rewards will be shared with investors
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Tax rules apply to gains and staking income
Fidelity has officially filed for a Solana-backed exchange-traded fund (ETF) with plans to list the product on the Cboe BZX Exchange. The ETF, known as the Fidelity Solana Fund, aims to track the price performance of Solana(SOL).
Solana ETF Targets Real-Time Market Exposure Through VWMP Index
The fund intends to offer investors access to SOL without directly handling the digital asset. It will use the Fidelity Solana Reference Rate, which calculates price data using a volume-weighted median price after 15 seconds. This Index aggregates prices from eligible spot markets and reflects the real-time value of SOL in U.S. dollars.
JUST IN: Fidelity files S-1 for a Solana fund.
Spot $SOL ETFs must be close. pic.twitter.com/tbTVB5Lzm9
— LuxAlgo (@LuxAlgo) June 13, 2025
The Trust will directly hold SOL, and its net asset value will mirror the Index’s methodology. Fidelity’s affiliate, FD Funds Management LLC, will sponsor the product. The Trust will not use leverage, derivatives, or complex instruments, keeping the structure simple for traditional investors.
Custody, Staking, and Asset Safeguards Built Into Fund Design
To support the product, Fidelity has named a custodian who will store all SOL in segregated accounts on behalf of the trust. Most assets will be held in cold storage with limited SOL in hot wallets for transactions. Security protocols will include offline private key management and strict multi-factor access systems.
Besides custody, the Trust plans to stake a portion of its SOL through trusted third-party providers. The resulting staking rewards will be treated as income and distributed accordingly. However, staking introduces risks like slashing penalties and liquidity delays during staking activation or withdrawal.
The Custodian will control all private keys, and the Sponsor will oversee staking activities and manage security. The Trust’s assets, including staked SOL, are not protected by FDIC or SIPC insurance. Still, all operational safeguards aim to ensure transparency, regulatory compliance, and asset protection.
Share Issuance, Trading, and Tax Compliance Structure Finalized
The Trust plans to issue and redeem shares in large blocks called Baskets through authorized financial institutions. Investors will trade shares on the Cboe BZX Exchange under a future ticker symbol, paying standard brokerage fees. Shares may trade at a premium or discount based on supply and demand.
The Sponsor will collect a fixed fee paid in SOL and calculate NAV daily using the Index price at 4:00 p.m. EST, with all figures published on Fidelity’s official website. The Trust will also disclose its SOL holdings and fees transparently.
Gains, losses, or staking rewards may create tax events. Fidelity confirmed that the Trust will comply with IRS rules and maintain all required disclosures in line with federal law.
