Grayscale Moves to Launch Solana ETF
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Grayscale, a major crypto asset manager in the United States, has taken another step toward launching a Solana exchange-traded fund (ETF). On Friday, the company filed a registration statement with the country’s Securities and Exchange Commission (SEC) to convert its Grayscale Solana Trust (GSOL) into an ETF listed on NYSE Arca.
As it stands, this follows its earlier application in December and reflects its broader efforts to bring cryptocurrency investments to Wall Street. However, similar to previous Bitcoin and Ethereum ETFs, this move would allow traditional investors to gain exposure to Solana without directly buying the digital asset.
No Staking in Grayscale’s Solana ETF
If approved, Grayscale’s Solana ETF will not engage in staking, the process where users lock up tokens to help secure the network and earn rewards. The company explicitly stated in its filing that none of the SOL held in the fund would be used for staking.
To this end, this decision follows past actions by asset managers like Fidelity and Ark Invest/21 Shares, which removed staking features from Ethereum ETF applications to meet SEC regulatory requirements. However, previously, under former SEC Chair Gary Gensler, the regulator viewed proof-of-stake networks as potential securities, prompting firms to adjust their proposals.
Growing Possibilities for Solana ETFs
Right now, analysts think Solana has a strong chance of securing regulatory approval, given recent shifts in the SEC’s position under the new administration. In addition to this, Solana’s regulated futures market in the U.S. adds to its credibility.
As it stands, the firm’s filing came just a day after the SEC acknowledged Fidelity’s application for a spot Solana ETF. However, as the regulatory agency reviews multiple crypto ETF applications, the market is watching closely. To this end, on Friday, Solana traded around $114.50, down 0.4% from the previous day, following a price dip linked to economic concerns.
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