Fidelity's New Solana ETF Heats Up The Race For Crypto Yield

Fidelity expanded its crypto footprint on Tuesday with the launch of the Fidelity Solana Fund (NYSE:FSOL), its third spot crypto ETF and its first offering tied directly to SOL, the native token of the Solana blockchain. Solana, valued at roughly $80 billion, is one of the largest smart-contract platforms and a key rival to Ethereum, which commands a market cap near $380 billion.

FSOL launches with a temporary waiver in both its expense ratio and its staking-reward fees, the former through May 18, 2026. Investors will subsequently incur a 0.25% expense ratio, along with a 15% fee on staking rewards, placing the fund between low-cost competitors and higher-fee incumbents.

Core Staking

Like other Solana ETFs that launched this year, FSOL plans to stake up to 100% of its holdings, though it isn’t required to meet a minimum threshold. Staking, the mechanism by which tokenholders help validate network transactions in exchange for rewards, is central to Solana’s investment appeal and widely viewed as crypto’s version of yield.

Fidelity will custody and stake assets through one or more node operators, along with Anchorage Digital Bank NA, BitGo Trust Company, and Coinbase Custody Trust Company. A portion of the SOL will be withheld to fund redemptions, liquidity needs, or expenses. Staking fees will be shared among custodians, node operators, and Fidelity when applicable.

FSOL enters a crowded and increasingly competitive field. At the head of the pack is the Bitwise Solana Staking ETF (NYSE:BSOL), a $418 million fund that stakes 100% of its SOL holdings and offers a 7.1% reward rate. Most notably, Bitwise operates its own validator, rather than delegating staking to an external provider. It also established a liquidity backstop to address delays in unstaking, supporting timely redemptions. BSOL’s 0.20% expense ratio and 6% staking fee are currently waived for the first three months on its first $1 billion in assets.

Grayscale’s $89 million Grayscale Solana Trust ETF (NYSE:GSOL) also targets full staking, but at higher fees: 0.35% plus a 23% staking fee.

Earlier this week, VanEck also launched the VanEck Solana ETF (NASDAQ:VSOL), offering investors exposure to SOL with a waiver on the sponsor fee at launch for the first $1 billion in assets.

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