Spot Solana ETF Asia debut! Hong Kong starts on October 27, while the United States is still waiting.

Huaxia Asset Management's Solana Spot ETF is set to be listed on the Hong Kong Stock Exchange on October 27, becoming the world's first approved Spot Solana ETF. After approval from the Hong Kong Securities and Futures Commission, it becomes the first of its kind authorized for trading in the jurisdiction. The product will be traded in three currencies: HKD, RMB, and USD, with a lot size of 100 shares and a management fee of 0.99% per annum.

Huaxia Fund Spot Solana ETF Product Details

(Source: Hong Kong Securities and Futures Commission official website)

According to news from the Hong Kong Securities and Futures Commission's official website, the Huaxia Solana ETF (3460) was approved by the Commission on October 17, becoming the first of its kind to be approved in Hong Kong. This marks the first approval of a non-mainstream coin ETF product in Hong Kong following the Bitcoin and Ethereum Spot ETFs, indicating further maturity and openness of Hong Kong's regulatory framework for crypto assets.

The Huaxia Fund website shows that the product will be launched on October 27, with a management fee of 0.99% per year. This rate is competitive in the crypto ETF market, lower than the 1.5% to 2% management fees of many U.S. Bitcoin Spot ETFs. A lower management fee is especially important for long-term holders, as costs accumulate over time and erode returns.

The primary custodian is Bank of China International Prudential Trust Company Limited, and the sub-custodian is OSL Digital Securities. Huaxia Fund stated that OSL also provides a virtual asset trading platform for the product. OSL is one of the first companies in Hong Kong to obtain a license from the SFC for a virtual asset trading platform, and its involvement enhances the product's compliance and security. Bank of China International Prudential Trust, as the primary custodian, provides the credit endorsement of a traditional financial institution.

Huaxia Solana ETF Core Elements:

Listing Date: October 27, 2025

Code: 3460

Management Fee: 0.99%/year

Trading Currencies: Hong Kong Dollar, Renminbi, US Dollar

Minimum Trading Unit: 100 shares per lot (for each coin)

Custodian: Bank of China International Prudential Trust Company Limited

Sub-custodian/Exchange: OSL Digital Securities

The product will be traded in Hong Kong exchange using Hong Kong dollars, Renminbi, and US dollars, with a trading volume of 100 shares for each currency. The innovation of this multi-currency design lies in its convenience for investors from different backgrounds. Hong Kong dollars are suitable for local investors, Renminbi attracts mainland funds coming south, and US dollars facilitate international investors. This design significantly reduces exchange costs and friction, making it a notable feature of the Hong Kong ETF market.

Strategic Significance of Hong Kong Leading the United States Approval

Hong Kong's approval was announced amid expectations that the U.S. Securities and Exchange Commission (SEC) may soon approve its first batch of Solana and other altcoin Spot ETFs. Although approval was initially expected to be completed before the October 10 deadline, the extended U.S. government shutdown is likely to delay that decision. This gives Hong Kong a head start in the Spot Solana ETF race.

This leading advantage has multiple implications. First, it reinforces Hong Kong's position as a financial center for crypto assets in Asia. In the global competition for crypto regulation, being the first to launch innovative products can attract capital inflows and talent aggregation. Second, it provides global investors with a compliant channel to allocate Solana in advance, without having to wait for the slow decision-making of U.S. regulators. Third, it may put pressure on the U.S. SEC to accelerate its decision-making process.

Last month, the U.S. Securities and Exchange Commission (SEC) simplified the process by introducing a universal listing standard, eliminating the need for specific tokens to be filed. This change led to a surge in new cryptocurrency ETF proposals, with several asset management companies submitting ETF applications for Solana, XRP, and other altcoins. However, the streamlined process does not mean quick approvals, as the SEC's cautious stance on crypto assets remains evident.

The efficiency of Hong Kong's regulatory agencies stands in stark contrast. From application to approval, the approval cycle for Huaxia Fund's Spot Solana ETF is relatively short, reflecting Hong Kong's proactive attitude following the “Policy Declaration on the Development of Virtual Assets.” The Hong Kong government has clearly stated its intention to establish Hong Kong as an international virtual asset center, and this policy support provides fertile ground for financial innovation.

JPMorgan predicts first-year inflow of 1.5 billion dollars

JPMorgan analysts stated earlier this month that they expect the net inflow for Solana ETF in its first year to be around $1.5 billion, which is about one-seventh of the inflow for Ethereum ETF in its first year. The analysts wrote: “If you look at the relative scale of Solana's DeFi TVL compared to Ethereum, a similar ratio emerges.”

This prediction is based on a comparison of the relative scale of the Solana and Ethereum ecosystems. According to DeFi Llama data, Ethereum's total value locked (TVL) exceeds $50 billion, while Solana's TVL is approximately between $7 billion and $8 billion, about one-seventh of Ethereum. JPMorgan believes that ETF fund inflows will be proportional to the ecological scale of the underlying blockchain.

However, the forecast of $1.5 billion in inflows for the first year is not insignificant. In comparison, the net inflows for the first month of the US Ethereum Spot ETF were around $1 billion, which, although far lower than the explosive growth of Bitcoin ETFs, still demonstrates the market's demand for mainstream altcoin ETFs. If the Solana ETF can indeed attract $1.5 billion in its first year, it will prove investors' confidence in the Solana ecosystem.

It is worth noting that the inflow of Spot Solana ETF in the Hong Kong market may differ from that in the U.S. market. The Hong Kong ETF market is relatively small and has a different investor structure. However, the first-mover advantage of Hong Kong products may attract global investors eager to allocate Solana, seizing market share before the U.S. products are launched.

Solana Current Market Performance and Ecological Strength

According to The Block's cryptocurrency price page, Solana's trading price is $184.2, having decreased by 0.28% in the last 24 hours, with a market capitalization of $100.6 billion, making it the sixth largest cryptocurrency in the world. This market cap size makes Solana a mainstream crypto asset, second only to Bitcoin, Ethereum, XRP, BNB, and USDT.

Solana's market capitalization exceeds 100 billion USD, providing ample liquidity foundation for its ETF. For ETF managers, the liquidity of underlying assets is crucial as it determines the price impact during large subscriptions and redemptions. Solana's daily trading volume on major cryptocurrency exchanges typically exceeds 3 billion USD, and this depth of liquidity is sufficient to support the operational needs of the ETF.

From an ecosystem perspective, Solana has shown strong performance in the DeFi, NFT, and meme coin sectors. The number of active users on decentralized exchanges like Raydium and Orca continues to grow, and Magic Eden is the second largest NFT marketplace after OpenSea. Solana's technical advantages—high throughput (theoretically 65,000 transactions per second) and low transaction fees (usually below $0.001)—make it the preferred platform for high-frequency trading and large-scale applications.

However, Solana also faces challenges. Network stability was once its Achilles' heel, although it has significantly improved in recent years. In addition, compared to Ethereum, Solana's degree of decentralization is lower, with validation nodes mainly concentrated in the hands of a few large operators. These technical and governance issues may affect institutional investors' willingness to allocate to the Spot Solana ETF.

Impact on the Global Crypto ETF Market

The launch of Hong Kong's first Spot Solana ETF has set a new benchmark for the global crypto ETF market. It demonstrates the willingness of regulators to go beyond Bitcoin and Ethereum, opening up more diversified crypto asset investment products. This could trigger a ripple effect, with other jurisdictions potentially accelerating the approval of similar products to avoid falling behind in the competition for financial innovation.

For the Solana ecosystem, the launch of the ETF brings institutional-level recognition and a channel for capital inflow. Although the forecasted inflow of $1.5 billion for the first year is relatively modest, it lays the foundation for larger-scale institutional allocations in the future. As more exchanges, asset management companies, and pension funds begin to embrace Solana, the development of its ecosystem will gain stronger financial support.