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Canary Capital, an Australian asset management firm, has officially filed with the US Securities and Exchange Commission (SEC) for a spot Solana ETF (exchange-traded fund).
This filing, announced on October 30, follows similar ETF applications by the firm for other cryptocurrencies.
On October 21, the firm filed for a spot Litecoin ETF, barely a week after filing for an XRP ETF.
Canary Capital’s proposed spot Solana ETF
The proposed spot Solana ETF aims to provide exposure to Solana’s price movements by tracking the CF Solana Index, which provides real-time pricing data.
This structure would enable investors to gain exposure to Solana without having to purchase and securely store the digital assets themselves, a process often fraught with technical challenges and security risks.
If approved, this ETF would open a pathway for institutional and retail investors alike to enter the Solana market through a traditional brokerage account, an opportunity likely to appeal to those seeking a simplified, lower-risk entry point into the cryptocurrency world.
In recent months, Solana’s market activity has shown robust user engagement, which Canary Capital regards as a favorable indicator of long-term sustainability.
Canary’s data highlights that Solana’s active user base now surpasses that of Ethereum and Binance Chain, even accounting for layer-2 networks.
This high user activity is seen as a key strength that could support the case for the SEC’s approval, despite the significant regulatory obstacles Solana faces.
Canary Capital’s Solana ETF application joins a growing list of similar filings, as multiple firms, including VanEck and 21Shares, submitted applications for spot Solana ETFs earlier in June.
Franklin Templeton is also reportedly eyeing a Solana ETF, signaling a rising interest among major financial players in providing exposure to Solana’s ecosystem through a regulated fund.
Canary Capital optimistic about getting altcoin ETFs approved
Founded in 2017 by Steven McClurg, a former Galaxy Digital executive, Canary Capital strategically focuses on broadening access to diverse cryptocurrencies through traditional financial channels.
While the firm has yet to establish a live exchange-traded fund in the United States, its consistent crypto ETF filings signal an unwavering commitment to tapping into the growing market of cryptocurrency-based investment products.
However, the road to US SEC approval for Solana and other altcoin ETFs is not straightforward.
Unlike Bitcoin and Ethereum, which received approval for ETFs earlier this year, cryptocurrencies like Solana, XRP, and Litecoin face more scrutiny due to concerns about their regulatory classification as either securities or commodities.
Solana’s network structure, which relies on fewer validator nodes compared to more decentralized systems like Ethereum, has raised questions over its level of decentralization—an area the US SEC has scrutinized heavily in its regulatory deliberations.
These regulatory uncertainties have kept analysts cautious about the prospects of near-term approval.
The SEC’s cautious stance on crypto-based ETFs for emerging assets like Solana reflects its intent to ensure a secure and transparent market for investors.
As a result, analysts anticipate potential delays for Solana ETF approvals in the US.
However, while the US regulatory landscape remains uncertain, other markets are advancing more rapidly.
For instance, Brazil recently approved two Solana ETFs, positioning itself as a testing ground for crypto asset ETFs and setting an example of a more supportive regulatory approach compared to the US.
The contrasting attitudes reflect a complex, evolving global regulatory landscape that will likely influence the direction of crypto ETFs in the coming years.
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