Hong Kong's first Solana Spot ETF has been approved and is about to be listed, while the review progress of the US SEC is lagging behind.

The Hong Kong Securities and Futures Commission (SFC) has officially approved the first Spot ETF for Solana (SOL). Meanwhile, the Solana ETF in the United States has been affected by the government shutdown, causing the SEC to have insufficient staff to review cases, resulting in delays in the review process for several Solana ETFs. The following is a comprehensive translated report.

Hong Kong's first Solana Spot ETF has been approved and is about to be listed.

The product named The ChinaAMC Solana ETF will officially be listed and traded on the Hong Kong Stock Exchange on October 27. The fund offers three currency trading options, allowing investors to trade in HKD, RMB, or USD. According to the description, the ETF will directly hold Solana Spot to track the price fluctuations of the asset, meaning that Hong Kong investors no longer need to open their own crypto wallets or face token access risks, as they can invest in Solana through traditional trading accounts. After Hong Kong approved the first batch of Bitcoin and Ethereum Spot ETFs in April this year, the Hong Kong regulatory authorities have again expanded the scope of cryptocurrency investment products. In the past six months, these two Spot ETFs have brought significant trading to the market. Now the approval of the Solana ETF symbolizes that Hong Kong is gradually opening up to more cryptocurrency asset investment opportunities.

The review of the Solana ETF in the United States is lagging behind.

The Solana ETF in Hong Kong is about to be listed, while at the same time, the review of the Solana Spot ETF in the United States remains stalled. The U.S. government has caused some public sectors to shut down due to a budget impasse, and the Securities and Exchange Commission (SEC) is operating with minimal staff. Several cryptocurrency ETF applications that were originally scheduled for approval in October have been forced to be delayed. This puts Hong Kong ahead of the United States in opening the Solana ETF.

Hong Kong's approval of the Solana ETF shows its intention to actively become a “regional digital asset investment metropolis.” The Hong Kong government has previously stated that it will support crypto financial innovation through a prudent regulatory approach. By means of the ETF, investors can participate in the rapidly growing blockchain market in a compliant manner.

However, Wall Street analysts have a relatively conservative expectation for the capital inflow into the Solana ETF. In a recent report, JPMorgan stated that compared to Bitcoin and Ethereum ETFs, the first-year capital inflow for the Solana ETF may only be around 1.5 billion USD. Analysts believe this is related to investors' familiarity with Solana and a decreased interest in non-mainstream crypto assets in the market. Compared to Bitcoin's status as “digital gold” or Ethereum's dominant position as a smart contract platform, Solana has advantages in high-speed trading and low costs, but its ecosystem is still developing and has not formed a stable institutional investment demand.

Even so, Hong Kong's initiative to launch the Solana ETF is still seen as a key strategic move, not only to solidify Hong Kong's leading position in the Asian financial market but also to attract more regional funds into the local trading market. Due to the multi-currency listing mechanism of the ETF, investors in Hong Kong dollars, Renminbi, and US dollars can easily participate, which helps promote cross-border capital flow and market liquidity.

However, market observers also remind investors that while the Solana ETF has innovative significance, it still faces multiple challenges in the short term. First, if there is insufficient capital inflow, the ETF may experience poor liquidity and price deviation from net asset value. Secondly, the uncertainty of the global macroeconomic environment may still affect the price volatility of crypto assets. Furthermore, as other markets gradually launch ETF products for different blockchains, the market enthusiasm for Solana may face risk dispersion.

This article reports that Hong Kong's first Solana Spot ETF has been approved and is about to be listed, while the US SEC's review progress is lagging behind. It first appeared in Chain News ABMedia.