Hong Kong’s SFC green-lights first spot Solana ETF

ChinaAMC’s Solana ETF becomes the region’s third approved crypto fund after Bitcoin and Ethereum, as US regulatory progress for the same product stalls.

The Hong Kong Securities and Futures Commission (SFC) has officially approved the first Solana (SOL) spot exchange-traded fund (ETF), as reported by the Hong Kong Economic Times on Wednesday.

Issued by ChinaAMC (Hong Kong), the new Solana ETF follows the earlier approvals of Bitcoin and Ethereum spot ETFs, becoming the third crypto fund sanctioned under the Chinese special jurisdiction’s virtual asset framework.

Hong Kong greenlights first Solana Spot ETF in the world

According to the Hong Kong Stock Exchange, the China Solana ETF is managed by China Capital Fund (Hong Kong) and will feature RMB counter 83,460 and US dollar counter 9,460. HKET news wrote that it is scheduled to debut on October 27, trading in lots of 100 units, with a minimum investment amount of approximately US$100, or HK$780.

The ETF’s virtual asset trading will take place on OSL Exchange, while OSL Digital Securities Co., Ltd. is the sub-custodian for the fund’s digital assets. Its management fee is set at 0.99%, with custody and administrative fees capped at 1% of the sub-fund’s net asset value, which could result in an expected annual expenditure ratio of about 1.99%. 

The fund will not issue dividends to shareholders, similar to the accumulation model seen in other spot crypto ETFs. Earlier this week, Solana announced on its official social media X account that its Chinese name will be “Solara.”

Hong Kong Stock Exchange oversight tightened

Hong Kong may have embraced three regulated spot crypto ETFs. However, the city’s main bourse is cracking down on companies attempting to turn their businesses into digital asset storage without proper authorization. 

According to Bloomberg, the Hong Kong Stock Exchange (HKEX), one of the three largest exchanges in the Asia-Pacific region, is querying the listing of at least five companies that sought to rebrand as “Digital Asset Treasury” (DAT) firms.

Sources familiar with the matter said none of these companies have been approved to change their operations into crypto treasuries. HKEX rules prohibit listed entities from transforming into businesses whose sole purpose is accumulating or holding digital assets.

A spokesperson for the Hong Kong Stock Exchange said all applicants and listed companies must have “viable, sustainable, and substantial” business operations before changing into DATs, adding that non-operational business models will not meet listing standards.

India and Australia have also imposed similar restrictions, where regulators have pushed back against companies trying to operate as publicly traded crypto reserves. 

Solana ETF regulatory progress in the United States

Crossing over to the other side of the Pacific, the US Securities and Exchange Commission (SEC) recently approved Form 8-A (12B) filed by 21Shares, as covered by Cryptopolitan earlier this week. The approval formally registers the Solana ETF on the Cboe BZX exchange and clears any regulatory hurdles for the fund to start trading soon.

However, the ongoing US government shutdown has halted progress on the required S-1 filings, temporarily suspending the launch timeline for Solana and other spot crypto ETFs. Without the S-1 review, no new funds can begin trading, despite their Form 8-A or 19b-4 approvals.

Several issuers, including Bitwise and Grayscale, have withdrawn or amended their filings in response to the delay. Under current U.S. securities law, applications can technically take effect automatically after 20 days; however, the SEC must review filings before any product can officially launch.

In other related news this week, Gemini announced the launch of a Solana-branded credit card with an auto-staking feature for earned rewards on Monday. The Solana Card is now part of Gemini’s crypto card suite, which already includes versions linked to Bitcoin and XRP.

The product offers up to 4% back on purchases, with rewards paid instantly in crypto. Its auto-staking option allows Solana rewards to be automatically staked on Gemini’s platform, earning up to 6.77% annual percentage yield (APY).

As of the time of this publication, Solana was trading at $184, consolidating below resistance levels near $191. Technical indicators from TradingView showed a bearish-biased relative strength index (RSI) of 40.9, although some analysts believe the downward momentum has flipped to “weak.”

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