- Grayscale has filed with the SEC to convert its Solana Trust into a spot ETF.
- Competitors like 21Shares and VanEck are also vying for spot Solana ETFs.
Grayscale Investments has officially filed with the U.S. Securities and Exchange Commission (SEC) to convert its Grayscale Solana Trust (GSOL) into a spot exchange-traded fund (ETF) listed on NYSE Arca.
Grayscale’s filing comes amid growing demand for cryptocurrency-based ETFs, a trend that gained momentum in early 2024 with the SEC’s approval of 11 spot Bitcoin ETFs. These ETFs sparked a market rally, with Bitcoin reaching a record high in March, followed by Ethereum-based ETFs later in the year. Solana’s recent market strength, coupled with its ecosystem’s expansion, has intensified interest in altcoin-based ETFs.
The Grayscale Solana Trust, currently the largest SOL investment fund globally, manages $134.2 million in assets, representing 0.1% of all SOL tokens in circulation. Grayscale anticipates that converting the trust into an ETF will improve liquidity, enhance price tracking, and offer investors regulated exposure to Solana.
The Road Ahead for Solana ETFs
Grayscale’s move aligns with similar efforts from asset managers such as VanEck, Bitwise, and Canary Capital, who have also filed for spot Solana ETFs. Market optimism has surged following the re-election of pro-crypto President Donald Trump and the anticipated appointment of a crypto-friendly SEC chair, Paul Atkin.
The success of Grayscale’s previous ETF conversions Bitcoin in January and Ethereum in July offers a promising precedent. However, the performance of these ETFs has varied significantly. While Bitcoin ETFs recorded $31 billion in net inflows, Ethereum ETFs have lagged, with cumulative net inflows of $597.55 million as of December.
News of the filing has fueled investor enthusiasm, with Solana’s price rising 3.62% to $235. The asset has surged over 130% year-to-date, supported by increased DeFi activity and broader market confidence. If approved, Grayscale’s Solana ETF would mark the U.S.’s third crypto-based ETF and further cement the country’s position as a global leader in digital asset innovation.
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