Hong Kong has given the green light to its first Solana spot exchange-traded fund (ETF), making it the third crypto spot ETF approved by the city, following Bitcoin and Ethereum.
On Wednesday, the Hong Kong Securities and Futures Commission (SFC) approved the China Asset Management (Hong Kong) Solana ETF, which will be listed on the Hong Kong Stock Exchange, according to a report by the Hong Kong Economic Times.
The product will feature both RMB and USD counters, allowing trading and settlement in either currency. Each trading unit will comprise 100 shares, with a minimum investment of around $100. The fund is set to make its debut on Monday.
The ETF’s virtual asset trading platform will be managed by OSL Exchange, with OSL Digital Securities acting as sub-custodian. ChinaAMC has established a management fee of 0.99%, while custody and administrative fees will be capped at 1% of the sub-fund’s net asset value, leading to an estimated annual expense ratio of 1.99%.
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Hong Kong solidifies its position in crypto ETFs
ChinaAMC (Hong Kong) is already recognized for launching Asia’s first Bitcoin (BTC) and Ether (ETH) spot ETFs, both of which received approval earlier this year.
The approval of spot Solana (SOL) ETFs in Hong Kong comes amid similar regulatory actions in other regions. Last year, Brazil became the pioneering nation to introduce trading of its spot Solana ETF on the Brazilian stock exchange, ahead of other global markets.
In April, Canada also launched spot Solana ETFs. The Ontario Securities Commission (OSC) approved asset managers Purpose, Evolve, CI, and 3iQ to issue ETFs containing Solana.
More recently, Kazakhstan introduced its first spot Bitcoin ETF, the Fonte Bitcoin Exchange Traded Fund (BETF), on the Astana International Exchange, with BitGo serving as the regulated crypto custodian.
The United States is lagging behind, as no confirmed Solana spot ETF has been approved or launched.
Related: How high can SOL price rise if a spot Solana ETF is approved?
Bitwise: Solana is positioned to be Wall Street’s preferred network
Bitwise chief investment officer Matt Hougan believes Solana is set to become the leading blockchain for stablecoins and real-world asset tokenization, dubbing it “the new Wall Street.”
In a conversation with the Solana Foundation’s Akshay BD earlier this month, Hougan noted that traditional finance stakeholders view Bitcoin as too abstract, but they recognize the immense potential of stablecoins to transform payments and tokenization as a means to revolutionize markets for stocks, bonds, commodities, and real estate.
According to Hougan, when institutional investors assess blockchain infrastructure, Solana’s speed, throughput, and transaction finality render it particularly attractive.
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