Grayscale Seeks Approval for Solana ETF Amid Industry Competition

• Grayscale files with SEC to convert its $134M Solana Trust into a spot ETF, joining a competitive market race.
• Coinbase Custody to manage assets for Grayscale’s proposed Solana ETF, which directly tracks SOL’s market price.
• Grayscale’s Solana ETF proposal highlights growing demand for regulated crypto products amid shifting U.S. SEC policies.

Grayscale Investments has filed a proposal with the Securities and Exchange Commission (SEC) for a Solana spot exchange traded fund (ETF). The Application proposes to convert the Grayscale Solana Trust into a regulated ETF that will be listed on NYSE Arca under Rule 19b-4. If approved, the ETF will trade under the ticker symbol GSOL.

Trust Assets and Market Reach

At the moment, the Grayscale Solana Trust has about $134.2 million in assets. It constitutes around 0.1% of all Solana (SOL) tokens in circulation. The proposed ETF will provide investors with regulated market access by directly tracking the price of Solana. BNY Mellon will handle asset servicing, with Coinbase Custody functioning as the custodian.

Grayscale’s application follows similar requests from competitors such as VanEck, Bitwise, and 21Shares. These businesses also plan to introduce Solana ETFs in the United States. There is hope for possible approvals as the SEC has started to review these petitions.

Shifting Regulatory Environment

The cryptocurrency industry expects changes in US regulatory laws under the new SEC administration. According to market experts, this could result in better outcomes for cryptocurrency-related products.

Bloomberg Senior ETF Analyst James Seyffart expects a Solana ETF could be approved by 2025 or later. However, he stated that any leadership changes could cause a delay in the deadline.

Broader ETF Applications

In addition to Solana, asset managers are looking into ETFs for Litecoin, XRP, and Hedera. With the growing number of applications, market participants expect further entries into this competitive space. Grayscale’s move underlines the growing demand for regulated cryptocurrency investment products, with Solana acquiring substantial market share.