China Approves Solana ETF: Third After Bitcoin and Ethereum!

The Hong Kong Securities and Futures Commission (SFC) has officially approved the spot Solana (SOL) ETF presented by ChinaAMC. This approval took place on October 17, 2023, making it the first spot Solana ETF to be licensed in the Asia region. This ETF will have an annual management fee of 0.99%, it will be custodied by BOCI-Prudential Trustee Limited, and OSL Digital Securities will also act as a sub-custodian. OSL will also provide the crypto trading platform.

The ETF will offer investors the opportunity to trade in Hong Kong dollars, Chinese yuan, and U.S. dollars. A 100-unit lot size has been established for each currency. Hong Kong's move comes at a significant time as expectations grow for the U.S. Securities and Exchange Commission (SEC) to approve spot Solana and other altcoin ETFs.

The SEC was expected to announce its approval decision on October 10, 2023; however, it is believed that the process has been delayed due to the U.S. government shutdown. Last month, the SEC introduced new regulations simplifying the ETF listing process and eliminated the token-based application requirement. This has led to a significant increase in crypto ETF applications.

According to financial analysts, JPMorgan anticipates approximately $1.5 billion in net inflows for Solana ETFs in their first year. This amount is expected to be about one-seventh of the inflows for Ethereum ETFs in their first year. Analysts also point out that Solana’s DeFi total value locked (TVL) shows a similar disparity compared to Ethereum. According to data, Solana is trading around $184.4 at the time of writing.