In a major development for the cryptocurrency industry, investment firm 21Shares filed an S-1 registration form for the Spot Solana ETF with the U.S. Securities and Exchange Commission (SEC) on Friday.
The 21Shares filing follows a similar filing by Bitcoin ETF issuer and asset manager VanEck on Thursday, indicating growing interest in Solana as a potential competitor to the highly anticipated Ethereum ETF, which is scheduled to begin trading in July.
21Shares Launches Core Solana ETF
21Shares Core Solana ETF, as described in point sawingaims to issue common shares with beneficial interests that are traded on the Cboe BZX stock exchange.
Its investment objective is to track the performance of SOL, providing investors with a convenient and cost-effective method of gaining exposure to SOL without making a direct investment in the asset. Based on the index, the ETF will maintain SOL and value its shares daily.
The trust will be sponsored by 21Shares and CSC Delaware Trust Company will serve as trustee. Coinbase Custody Trust Company will serve as the SOL custodian, holding all of the Trust’s SOLs on its behalf.
SOL Price Consolidates After ETF Initial Announcement
While SEC approval of the Solana ETF is subject to regulatory and compliance review, these filings indicate a growing demand for investment products that expose Solana digital assets.
If approved, the ETFs will provide investors with a regulated and accessible way to participate in Solana’s potential growth and performance.
In particular, this may be the beginning of recent applications being submitted to the SEC by the world’s largest asset managers, as has already been the case with Bitcoin and Ethereum ETFs.
Nevertheless, SOL did not react as it did on Thursday, when VanEck announced it had filed for the Solana ETF, sending SOL’s price up 9% to $150, after falling to $121 earlier in the week. SOL is currently trading at $142 due to the 4% price correction that took place over the last 24 hours.
Featured image from DALL-E, chart from TradingView.com
