In a significant development for the cryptocurrency industry, investment firm 21Shares filed an S-1 registration form for a 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 anticipated Ethereum ETF market, which is expected to begin trading in July.
21Shares Introduces Core Solana ETF
The 21Shares Core Solana ETF, as described in the archivingaims to issue advantageous interest common shares that are traded on the Cboe BZX Exchange.
Its investment objective is to track the performance of SOL, providing investors with a convenient and cost-effective method to gain exposure to SOL without making a direct investment in the asset. Based on the index, the ETF will hold SOL and value its shares daily.
The Trust will be sponsored by 21Shares, with CSC Delaware Trust Company acting as the Trustee. Coinbase Custody Trust Company will act as the custodian of the SOL, holding all of the SOL in the Trust on its behalf.
SOL price consolidates after initial ETF announcement
While SEC approval of a Solana ETF is subject to regulatory review and compliance, these filings demonstrate the growing demand for investment products that showcase Solana’s digital assets.
If approved, ETFs would provide investors with a regulated and affordable way to participate in Solana’s potential growth and performance.
Notably, this could be the start of new SEC filings by the world’s largest asset managers, as has already been the case with Bitcoin and Ethereum ETFs.
However, SOL did not see the same reaction it did on Thursday with VanEck’s announcement of its Solana ETF filing, which sent SOL’s price rallying 9% to $150 after a drop to $121 earlier in the week. SOL is now trading at $142 due to a 4% price correction experienced in the past 24 hours.
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