Crypto Currents: Fidelity launches solana staking ETF

Fidelity and VanEck are intensifying the race for solana ETFs by launching staking-enabled funds, even as the broader market faces pressure with record outflows from BlackRock’s bitcoin fund. Meanwhile, payment and infrastructure titans continue their buildout, with Mastercard rolling out crypto wallet aliases. Stay up on the crypto news that matters with “Crypto Currents,” daily from The Fly. Join us at 2 PM ET for your essential briefing on the fast-moving world of cryptocurrency on FlyCast radio, Also, subscribe to our YouTube channel for the Crypto Fly By weekly recap.

FIDELITY AND VANECK LAUNCH STAKING-ENABLED SOLANA ETFS: Wall Street”s embrace of altcoins like solana (SOL-USD) is accelerating as asset managers roll out new investment vehicles. Fidelity has launched the Fidelity Solana Fund, or FSOL, on the NYSE Arca, marking its first crypto product to feature a staking component. This brings one of the world’s largest asset managers into a sector previously defined by early movers like Bitwise and Grayscale. Simultaneously, VanEck introduced its own staking-enabled solana ETF, VSOL, waiving fees to attract early capital. This activity comes as the SEC’s new streamlined approval process encourages a wave of altcoin-focused funds, with Canary Capital also debuting a spot solana product for staked tokens.

BLACKROCK BITCOIN ETF SEES RECORD $1.26B OUTFLOWS: Despite the enthusiasm for altcoins, the flagship cryptocurrency is facing significant headwinds. BlackRock’s (BLK) spot bitcoin (BTC-USD) ETF, IBIT, has recorded $1.26B in net outflows so far this month, the largest monthly redemption since its inception. CoinDesk reports that the fund’s price has dropped 16% amid a broader market slide that saw bitcoin dip below $90,000. The bearish sentiment is further evidenced by a surge in the cost of put options, as traders rush to hedge against further downside.

MASTERCARD TAPS POLYGON FOR CRYPTO ALIASES: Mastercard (MA) is moving to simplify the user experience for self-custody wallets. The company is rolling out a new “Crypto Credential” service that replaces complex wallet addresses with verified, human-readable aliases. The system will debut on the Polygon blockchain, with identity verification provided by Mercuryo. The initiative aims to reduce transaction errors and enhance trust in digital token transfers, further bridging the gap between traditional payment rails and the Web3 ecosystem.

STRATEGY RETAINS UPSIDE POTENTIAL DESPITE BITCOIN SLUMP: Analysts at TD Cowen are maintaining a bullish outlook on Strategy (MSTR), seeing 170% upside for the shares despite bitcoin’s recent battering. The firm reiterated its $585 price target, arguing that Strategy’s premium to its NAV is a feature of its ability to accrete bitcoin per share, not a bug. Analysts cited potential S&P 500 inclusion and a more favorable regulatory environment as key tailwinds that could stabilize investor demand.

HIVE DIGITAL REPORTS RECORD REVENUE AS MINERS PIVOT: Bitcoin miner HIVE Digital Technologies (HIVE) saw its shares jump over 7% after reporting record quarterly revenue of $87.3M, a 285% increase vs. last year. The report notes that the growth was driven by an aggressive expansion of its mining fleet, which helped offset the impact of the halving. The sector remains in flux, however, as firms diversify; Bitfarms (BITF) announced plans to pivot entirely to AI over the next two years, while peers like Bitdeer (BTDR) and TeraWulf (WULF) also reported strong revenue growth driven by infrastructure upgrades.

CLOUDFLARE OUTAGE HITS CRYPTO PLATFORMS: A widespread outage at internet infrastructure provider Cloudflare (NET) knocked multiple major crypto platforms offline on Tuesday. CoinDesk reports that the disruption affected front-ends for services including Toncoin and the Arbitrum block explorer, underscoring the industry’s continued reliance on centralized infrastructure. Cloudflare shares dipped 3.5% in pre-market trading following the incident.

SEC DROPS CRYPTO FROM 2026 EXAM PRIORITIES: In a signal of a potential regulatory shift, the U.S. SEC has removed cryptocurrency from its list of examination priorities for FY26. CryptoSlate reports that the agency’s Division of Examinations made no mention of “crypto,” “digital assets,” or “blockchain” in its latest agenda, a stark departure from previous years where the sector was a primary focus. The omission suggests a pivot toward a more restrained oversight approach under the new leadership.

PRICE ACTION: As of time of writing, bitcoin was trading at approximately $93,535.51 , while ether was trading near $3,156.66, according to price data from CoinDesk.