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Hong Kong approves Asia's first "Solana Spot ETF"! How is the progress in the US?
On October 22, 2025, the global crypto assets market witnessed a milestone event: the Hong Kong Securities and Futures Commission (SFC) officially approved Asia's first spot trading exchange-traded fund (ETF) that directly invests in Solana (SOL). This “ChinaAMC Solana ETF” issued by China Asset Management (Hong Kong) Limited not only places Hong Kong at the forefront of the financialization of digital assets once again but also sparks deep reflection in the market regarding global capital flows, the future value of Solana, and regulatory processes across various regions.
Hong Kong takes the lead in布局
Following Bitcoin (BTC) and Ethereum (ETH), Solana has become the third crypto asset to receive approval for a spot ETF in Hong Kong, which undoubtedly serves as a strong endorsement of its technological strength and market position.
Core product information: Issuer: Huaxia Fund (Hong Kong), a subsidiary of Huaxia Fund, one of the leading fund companies in mainland China. Listing date: Expected to officially list and trade on the main board of the Hong Kong Stock Exchange (HKEX) on October 27, 2025. Trading codes: To meet the needs of different investors, this ETF will establish three trading counters, namely the HKD counter (3460), RMB counter (83460), and USD counter (9460). Investment structure: This is a “physically-backed” ETF, meaning the fund will hold 100% of the actual SOL tokens, and its performance will closely track the Asia-Pacific reference rate of the CME CF Solana-USD Index. It is worth noting that the fund's prospectus clearly states that “none of the held SOL will be staked.” Fees and thresholds: The management fee for this ETF is set at 0.99%, and with the addition of custody and administrative fees, the annual total expense ratio (TER) is expected to be around 1.99%. The investment threshold is relatively friendly, with a minimum trading unit of 100 fund units, and the minimum initial investment amount is about 100 USD, opening the door for retail investors. Partners: OSL Exchange will serve as its virtual asset trading platform, while OSL Digital Securities will act as the sub-custodian, together building a compliant and secure infrastructure.
This move makes Hong Kong the first in Asia and one of the few regions globally to provide regulated Solana investment channels, further solidifying its ambition to become a leading global virtual asset center.
In-depth observation reveals that while Hong Kong embraces encryption innovation, it has not loosened the reins of regulation, but instead has adopted a mature “dual-track strategy.”
On one hand, Hong Kong is actively opening the door for compliant crypto investment products (such as spot ETFs), providing the market with clear and transparent investment channels. From BTC and ETH to today's SOL, the Hong Kong SFC is gradually expanding the categories of regulated assets.
On the other hand, Hong Kong remains highly vigilant against potential market risks. Recently, major Asian stock exchanges, including the Hong Kong Stock Exchange, are tightening their scrutiny of listed companies' behaviors of “hoarding” digital assets. This move aims to prevent listed companies from using shareholder funds for high-risk speculation unrelated to their main business, protecting the interests of investors.
This strategy of parallel “openness” and “regulation” demonstrates Hong Kong's prudence and foresight as an international financial center in integrating emerging digital assets with the traditional financial system. It encourages financial innovation while safeguarding the risk baseline.
A barometer for global capital?
The launch of the Hong Kong SOL Spot ETF is not just an addition of a financial product; it serves more as a barometer for testing market reactions and guiding the flow of global funds.
JP Morgan predicts that the new batch of altcoin ETFs in Hong Kong is expected to attract inflows of $1 billion to $1.5 billion in the first year. Although this figure seems modest compared to the massive market of over $100 billion for Bitcoin spot ETFs in the U.S., it represents a structural increase in institutional demand for Solana. Even inflows of hundreds of millions of dollars would be sufficient to withdraw a large amount of circulating SOL from the exchange, significantly impacting its supply dynamics.
Market analysis indicates that true market influence does not come from the price surge on the first day of listing, but rather from the ability to form a sustained net inflow. Referring to the experience of the Bitcoin ETF in the United States, its biggest price driver appeared nearly two months after listing, when the assets under management (AUM) surpassed $10 billion. The same logic may apply to Solana; if institutional investors in Hong Kong view it as a strategic allocation rather than a short-term trade, the long-term support for its price will be more solid.
In addition, a localized ETF will greatly enhance liquidity during Asian trading hours, providing compliant channels for hedging and arbitrage, which will help stabilize price discovery and reduce sharp fluctuations caused by insufficient liquidity.
How is the progress in the United States?
In stark contrast to Hong Kong's swift actions, the United States is clearly lagging behind in the approval of the Solana spot ETF.
Regulatory Delays and Market Expectations Currently, several asset management giants, including VanEck, Bitwise, Fidelity, and Grayscale, have submitted applications for a Solana spot ETF to the U.S. Securities and Exchange Commission (SEC). However, due to the ongoing federal government shutdown in the United States, the SEC is severely understaffed, causing the approval process for multiple crypto assets ETFs to come to a standstill. The approval window originally expected in October has also been delayed.
Potential Market Size and Challenges Despite the lagging progress, the market remains optimistic about the prospect of the U.S. approving the SOL spot ETF. Analyst Nate Geraci believes that the chances of approval in 2025 are very high. JPMorgan expects that once approved, the U.S. SOL spot ETF could attract about $1.5 billion in funding in its first year. This prediction is considered “relatively moderate,” mainly because by then there will already be Bitcoin and Ethereum ETFs in the market, and the marginal demand from investors for a third crypto asset ETF may not be as strong as for the former.
Conclusion
Hong Kong has approved the first Solana spot ETF, marking an important footnote in the mainstreaming process of global crypto assets. It not only opens the door to institutional funds for Solana but will also have a profound impact on its market structure, liquidity, and global price discovery. The official listing on October 27 will be the first test of genuine market demand.
Meanwhile, Hong Kong has once again gained the upper hand in the global regulatory race, with its flexible and prudent dual-track regulatory model providing valuable reference for other regions. Although the United States is temporarily lagging due to internal issues, its vast market potential should not be underestimated. In the future, how global funds will flow and play between these two financial hubs in the East and West will be a key point in shaping the next phase of the Crypto Assets market landscape.
#US Government Shutdown