Crypto Analyzer

21Shares Files for Solana ETF with SEC

21Shares, a leading crypto-native exchange-traded products issuer, has made a significant move by filing an S-1 registration statement with the US Securities and Exchange Commission (SEC) for a spot Solana ETF. This new ETF, named the 21Shares Core Solana ETF, aims to provide investors with exposure to Solana, which currently ranks as the fifth-largest cryptocurrency by market cap.

If approved, the 21Shares Core Solana ETF would track the price of SOL and be traded on the Cboe BZX Exchange. Similar to 21Shares’ other spot ETF offerings, the underlying SOL assets will be held in segregated wallets by Coinbase Custody Trust Company.

One notable aspect of this new ETF is that it will not offer staking rewards for SOL holdings. This decision may have been influenced by ongoing discussions with regulators, as the SEC’s stance on crypto staking remains uncertain.

However, the approval path for the Solana ETFs is not without challenges. The SEC has hinted at the possibility of classifying SOL as a security, which could subject it to stricter regulations. Additionally, the absence of a well-established Solana futures market, a factor considered in the approval of Bitcoin and Ethereum ETFs, could pose another hurdle.

Despite these obstacles, some in the crypto community believe that a potential change in US leadership could facilitate the approval of a SOL ETF. Speculation surrounding a shift in regulatory stance based on the outcome of future elections, such as a Donald Trump presidency, is being closely watched by industry observers.

Following the news of VanEck filing for a spot Solana ETF with the SEC, the price of the Sol token has surged over 16% in the past week. This positive market response indicates growing interest and anticipation for the introduction of Solana ETFs in the US financial market.

As of the latest data, SOL is trading at $147.53, reflecting a 6.25% increase in the past 24 hours, according to CoinMarketCap figures.

With evolving regulatory dynamics and increased institutional interest in cryptocurrencies, the launch of a Solana ETF could mark a significant milestone in the mainstream adoption of digital assets.