- Solana’s price stabilizes around $142 on Wednesday, having climbed 7% this week.
- The BUIDL fund from BlackRock is now live on the Solana platform.
- Fidelity has submitted a proposal for a spot Solana ETF with Cboe.
As of Wednesday, Solana’s (SOL) price was around $142, reflecting a recovery of 7% over the course of the week. There is a growing interest from asset management firms in the Solana ecosystem, highlighted by the recent launch of BlackRock’s USD Institutional Digital Liquidity Fund (BUIDL) and Fidelity’s application for a spot Solana Exchange Traded Fund (ETF) with Cboe Global Markets, which is fostering a positive outlook for SOL.
Increasing Interest from Asset Management Firms in Solana
Solana disclosed on Tuesday that BlackRock’s BUIDL fund, a tokenized money market fund boasting over $1.7 billion in total assets, has been introduced on its platform.
The BlackRock USD Institutional Digital Liquidity Fund (BUIDL) tokenized by @Securitize delivers institutional-level yield via Solana’s high-performance network.
According to @RWA_xyz, over $1.7 billion in BUIDL tokens have been distributed on other chains as of March 25th. pic.twitter.com/ES8uzGQbxX
— Solana (@solana) March 25, 2025
Securitize, a blockchain-focused tokenization and digital asset solutions firm working with leading asset managers such as BlackRock and KKR, highlighted on a recent social media post the advantages of moving to Solana.
“Given Solana’s high throughput, low transaction costs, and scalability, it serves as an optimal blockchain for supporting institutional-level real-world assets. Expanding to Solana enhances accessibility for a wider range of investors and applications.”
This collaboration with Securitize suggests that Solana is emerging as a favored platform for institutional financial products, which may lead to heightened adoption and investment, enhancing the bullish sentiment surrounding SOL.
At the same time, Fidelity Investments has submitted a proposal for a Solana spot ETF to the Securities and Exchange Commission. The proposal was made through Cboe, which filed a 19b-4 form to list the anticipated ETF. This move follows Fidelity’s recent establishment of a Delaware Trust entity for its Solana fund. However, Fidelity has not yet completed the necessary S-1 filing required for companies looking to issue new securities in public markets.
ETF applications from major investment firms are typically viewed as encouraging indicators for Solana in the long run, as these funds can facilitate traditional investors’ access to SOL without the need to buy and manage the cryptocurrency directly. Furthermore, the approval of such an ETF could enhance SOL’s legitimacy and boost liquidity.
Crypto ETF FAQs
An Exchange-Traded Fund (ETF) is an investment vehicle or index that reflects the value of an underlying asset. ETFs can track individual assets, groups of assets, or specific sectors. For instance, a Bitcoin ETF mirrors Bitcoin’s value. Investors use ETFs to gain exposure to certain assets.
Yes, the first Bitcoin futures ETF was approved by the US Securities & Exchange Commission in October 2021. A total of seven Bitcoin futures ETFs have received approval, while over 20 are still awaiting the regulator’s go-ahead. The SEC has cited the nascent nature of the cryptocurrency industry and its susceptibility to manipulation as reasons for the delays in approving additional crypto-related futures ETFs.
Indeed. In January 2024, the SEC sanctioned the listing and trading of several Bitcoin spot Exchange-Traded Funds, paving the way for institutional and mainstream investors to buy into the leading cryptocurrency. This decision was regarded as a transformative development for the industry.
The primary advantage of crypto ETFs is the ability to gain exposure to a cryptocurrency without direct ownership, thus minimizing the risks and costs associated with holding the asset. Other benefits include a more straightforward entry for investors and enhanced security, as ETFs manage the safekeeping of the underlying asset holdings. The major drawback is that investors do not have direct ownership of the asset—“not your keys, not your coins,” as the saying goes. Additional disadvantages include the higher costs linked to holding crypto, as ETFs charge management fees. Finally, while investing in ETFs may mitigate some risks, the price fluctuations of the underlying cryptocurrency are likely to be mirrored in the ETF as well.