Hong Kong approves its first spot Solana ETF, stepping up competition against the US

Hong Kong approves its first spot Solana ETF, stepping up competition against the US

Hong Kong has joined a handful of global jurisdictions to officially approve spot cryptocurrency exchange-traded funds (ETFs). It is the fourth country to allow trading in Solana ETFs, following Canada, Brazil and Kazakhstan, while the US is lagging behind and awaiting approval.

Hong Kong’s third cryptocurrency ETF

The Hong Kong Securities and Futures Commission (SFC) has approved China Asset Management (Hong Kong) Solana ETF to be available on the local exchange. The fund will feature both RMB and USD counters, allowing trading and settlement in both currencies. The minimum investment is around $100 and the fund is expected to launch on October 27.

Trading will be handled by OSL Exchange, while OSL Digital Securities will act as the custodian. The management fee is 0.99%, with total costs around 1.99% per year.

A significant step in competition

The approval comes as other countries, such as Brazil, Canada and Kazakhstan, are actively paving the way for spot cryptocurrency ETFs. Brazil, for example, already launched trading with its Solana ETF last year, while Canada approved ETFs from Purpose, Evolve, CI and 3iQ in April.

On the other hand, the US is still waiting for approval for its first spot Solana ETF, leaving it behind the rest. This gap highlights the growing competition and interest in cryptocurrency ETFs in Asia and Latin America.

Solana’s future and potential

Investment experts, such as Matt Hougan of Bitwise, believe that Solana has great potential to become the main infrastructure for stablecoins and asset tokenization. Hougan calls Solana “the new Wall Street,” noting its high speed, throughput, and finality of transactions, which are key to institutional interest.

While Solana’s price remains relatively stable, the expectation is that the approval of a spot ETF could significantly increase its value and attract more investors.

Conclusion

Hong Kong’s move confirms its position as a major player in the crypto ETF space, and its decision could be a catalyst for other jurisdictions. While the US remains cautious, other markets are showing that interest in crypto ETFs is growing and their potential is growing.

Stay tuned and we may soon see the first Solana spot ETF approved in the world’s largest economy.

*This is not an investment recommendation.

The Coingarage Team