Hong Kong Approves Solana (SOL) Spot ETF, Boosting Crypto Accessibility

In a landmark decision, Hong Kong’s Securities and Futures Commission has approved the first Solana (SOL) spot exchange-traded fund (ETF), according to CryptoNews. This approval positions Solana alongside Bitcoin and Ethereum as part of the city’s growing portfolio of regulated digital assets.

The Solana ETF, managed by China Asset Management (Hong Kong), is set to commence trading on October 27, as reported by the Hong Kong Economic Times. This development highlights Hong Kong’s ambition to establish itself as a leading hub for digital assets in Asia.

Investor Accessibility and Market Impact

The newly approved Solana ETF will be traded on the OSL Exchange, with each trading unit comprising 100 shares. The minimum investment is pegged at approximately $100, or HK$780, making it accessible to retail investors. OSL Digital Securities will handle custody and settlement services.

The fund’s management fee is set at 0.99%, with custody and administrative costs capped at 1% of the fund’s net asset value. The estimated annual recurring expense ratio is 1.99%, and the ETF will not distribute dividends.

China Asset Management (Hong Kong) already offers Bitcoin and Ethereum spot ETFs. The introduction of the Solana ETF marks the first SOL-based fund available in both Asian and U.S. markets, reflecting growing institutional interest.

Global Adoption of Solana ETFs

Globally, the acceptance of Solana ETFs is gaining momentum. Earlier this month, 21Shares received U.S. regulatory approval for its Solana Spot ETF, allowing it to trade on a major American exchange. This product aims to provide direct exposure to Solana’s spot price and may include staking features, potentially increasing institutional demand.

Other major issuers such as VanEck, Bitwise, Grayscale, Canary Capital, Franklin Templeton, Fidelity, and CoinShares have also received approval for Solana spot ETF proposals, with listings anticipated soon.

Solana currently holds a market capitalization of approximately $100.8 billion, ranking it below Bitcoin, Ethereum, Tether, Binance Coin, and Ripple, but above USDC, according to CoinGecko data. Analysts predict that continued investor interest could drive Solana’s price toward the $300 mark.

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