Hong Kong Approves First Solana Spot ETF Ahead of Global Race

Hong Kong’s Securities and Futures Commission (SFC) has approved ChinaAMC’s spot Solana (SOL) exchange-traded fund, marking the first of its kind in Asia. 

The fund “ChinaAMC Solana ETF (03460)” was authorized on October 17 and will begin trading on October 27 on the Hong Kong Stock Exchange. This makes Solana the third cryptocurrency to get an approved spot ETF in Hong Kong, after Bitcoin and Ethereum.

A Low-Cost Gateway Into Solana

According to the SFC’s website, the ETF will be listed in three currencies — Hong Kong dollars, Chinese yuan, and U.S. dollars. Each trading unit will consist of 100 shares, and investors can start with as little as $100, which is about HK$780.

ChinaAMC’s website shows a management fee of 0.99% per year, with an annual total expense ratio of around 1.99%. The ETF will not distribute dividends and will follow an accumulation model similar to other crypto ETFs in the region.

The main custodian of the fund is BOCI-Prudential Trustee Limited, and OSL Digital Securities will handle trading and digital asset storage. The ETF will be traded on the OSL Exchange, one of Hong Kong’s licensed platforms for virtual assets. 

According to a spokesperson from ChinaAMC, the launch is “a major milestone for digital asset development in Hong Kong.” The firm also noted that this is meant to give investors an easier and safer way to get exposure to Solana without directly buying the token.

Global Race for Crypto ETFs

Meanwhile, this is coming at a time when the United States is still waiting for similar products to be approved. The U.S. Securities and Exchange Commission (SEC) has delayed decisions on spot Solana and other altcoin ETFs because of the government shutdown earlier this month. Meanwhile, Swiss company 21Shares recently received U.S. approval for its own Solana ETF after filing Form 8-A, but trading has not yet started.

At the moment, Solana’s price stands at $184.26. This is a slight drop of 0.12% in the last 24 hours, with a market capitalization of $100.7 billion.

According to analysts at JPMorgan, Solana ETFs could see about $1.5 billion in investments during their first year, which is around one-seventh of what Ethereum ETFs attracted.

Also Read: Solana Ends Support for Saga Phone After Just Two Years