Grayscale Investment’s Next Move: A Spot Solana ETF?

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Grayscale Investments, the digital asset management firm, has filed a 19b-4 application with the U.S. Securities and Exchange Commission (SEC) to list a spot Solana exchange-traded fund (ETF).

If approved, the S-1 registration form would enable the Grayscale Solana Trust to list and trade on the New York Stock Exchange (NYSE) under the ticker symbol GSOL, according to a 19b-filing on December 3.

The proposed ETF would represent a conversion of Grayscale’s existing Solаna Trust into a spot ETF. This follows the same approach the company previously used to convert its spot Bitcoin and Ether trusts into ETFs.

“The Trust is the world’s largest Solana investment fund by assets under management as of the date of this filing,” the filing stated. The Grayscale Solana Trust currently manages assets worth approximately $134.2 million. Grayscale stated that it holds around 0.1% of all SOL in circulation.

If the SEC approves the filing, Grayscale becomes the first issuer of a Solana spot ETF, building on its experience managing the underlying asset through its existing Solana trust.

According to the filing, BNY Mellon Asset Servicing, a division of The Bank of New York Mellon, will serve as the administrator and transfer agent for the trust of Grayscale’s proposed spot SOL ETF. Coinbase Custody is set to act as the custodian.

Grayscale has joined a growing group of crypto asset management firms, including 21Shares, Canary Capital, VanEck, and Bitwise, in seeking approval from the SEC for a spot Solana ETF.

Competition to launch a SOL ETF has intensified as the cryptocurrency’s price has surged by 277% over the past 12 months, driving its market capitalization to surpass $112 billion.

The SEC is expected to review applications for a SOL ETF by January 2025, with the decision deadline coinciding with the anticipated resignation of current SEC Chair Gary Gensler. Following the initial review, the SEC typically has up to 240 days to issue a final decision, which would place the ultimate deadline around mid-March 2025.

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MICHAELA

Michaela is a news writer focused on cryptocurrency and blockchain topics. She prioritizes rigorous research and accuracy to uncover interesting angles and ensure engaging reporting. A lifelong book lover, she applies her passion for reading to deeply explore the constantly evolving crypto world.

Michaela has no crypto positions and does not hold any crypto assets. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Daily is the official publication of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.

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