Grayscale Investments, a leading digital asset manager, has officially filed with the U.S. Securities and Exchange Commission (SEC) to launch a spot Solana exchange-traded fund (ETF). This move places Grayscale in competition with other firms like 21Shares, Canary Capital, VanEck, and Bitwise, all of whom are racing to secure SEC approval for similar products.
Details of the Grayscale Solana ETF
According to a 19b-4 filing submitted on December 3, the proposed ETF—dubbed the Grayscale Solana Trust (GSOL)—would trade on the New York Stock Exchange if approved. The fund would convert Grayscale’s existing Solana Trust into a spot ETF, replicating the company’s approach with its spot Bitcoin ETFs.
Grayscale highlighted that the Grayscale Solana Trust is the largest Solana investment fund globally, managing approximately $134.2 million in assets. The filing also notes that the trust’s holdings account for about 0.1% of all Solana (SOL) tokens in circulation.
Key Partners and Infrastructure
Grayscale plans to partner with key financial institutions for its Solana ETF:
- Coinbase Custody: To serve as the custodian for the ETF’s SOL holdings.
- BNY Mellon Asset Servicing: A division of The Bank of New York Mellon, expected to act as the trust’s administrator and transfer agent.
Increasing Competition for Spot Solana ETFs
Grayscale joins a growing list of firms vying to launch a spot Solana ETF. Rivals include 21Shares, Canary Capital, VanEck, and Bitwise, while Franklin Templeton is also exploring the possibility.
To move forward, Grayscale will need to accompany its 19b-4 filing with an S-1 registration statement, a prerequisite for listing GSOL on a public stock exchange.
Rising Interest in Solana
The competition to list a spot Solana ETF comes as the cryptocurrency experiences a significant price surge. Over the last 12 months, Solana’s price has risen 277%, bringing its market capitalization to over $112 billion.
Following Grayscale’s filing, Solana’s price saw a further bump, trading at $238, up nearly 4% since the announcement.
