Grayscale Investments Firm Seeks SEC Approval for Solana ETF

Highlights:

• Grayscale Investments firm has submitted a fresh filing to convert its Trust into Solana ETF.
• The fresh filing implies that Grayscale will join four other competitors in the race for the SOL ETF endorsement.
• In its filing, Grayscale stated that an ETF approval would make the processes of SOL investment less complex and cost-effective.

Grayscale has joined the race for a possible Solana (SOL) Exchange Traded Fund (ETF) endorsement after presenting its 19b-4 filing to the United States Securities and Exchange Commission (SEC). In the filing, the asset investment firm noted that it aims to convert its Grayscale Solana Trust into a spot ETF commodity.

Should the SEC approve the application, the entity would trade with the emblem GSOL on the New York Stock Exchange (NYSE). It is worth noting that Grayscale achieved its previous ETFs, including Bitcoin (BTC) and Ethereum (ETH), via similar means.

BREAKING: @Grayscale, a $50 billion asset management company, officially files for @Solana ETF with NYSE (New York Stock Exchange). pic.twitter.com/zmWeSBB1SR

— SolanaFloor (@SolanaFloor) December 3, 2024

Earlier this year, the investment platform filed applications with the SEC  to convert BTC and ETH Trusts into ETFs. Both received approval in January and July, respectively. Meanwhile, in its filing for a SOL ETF, Grayscale described its Trust as the most valuable investment fund by assets under management.

The application stated:

“The Trust is the world’s largest Solana (“SOL”) investment fund by assets under management as of the date of this filing. The Trust has approximately $134.2 million in assets under management (representing 0.1% of all SOL in circulation).”

SOL Trust Shares Trade Millions Daily

Still describing its Trust, Grayscale’s application noted that the entity shares trade millions daily. It added that over a quarter of a million American investor accounts own the shares. Furthermore, the filing stated that most investors consider the Trust commodity the least complex and cost-effective method to acquire SOL.

According to the filed document, the shares’ value failed to track the Trust’s value underlying SOL because it did not appear as an ETF. Grayscale believes that if the regulatory watchdog endorses its application, it will allow traders to invest in SOL under a regulated national securities exchange.

Filings for SOL ETF Approval Gains Momentum

By becoming the latest entrant, Grayscale will join competitors, including Bitwise, Canary Capital, VanEck, and 21Shares, in the race for Solana ETF approvals. Grayscale’s involvement signifies mounting pressure for the SEC to look into the several applications and potentially endorse them.

Moreover, the United States political scale is on the verge of a total overhaul following Trump’s victory in the November presidential election. Having shown commendable insights into what it entails to become a pro-crypto leader, one could assert that the Trump-led administration could become a positive turning point for the different SOL ETF filings.

SOL ETF Approval Might Happen in 2025 or 2026

Like every other enthusiasts, James Seyffart, a senior ETF analyst with Bloomberg, broke the news to his followers. However, apart from the bullish sentiments emanating from such disclosures, enthusiasts seemed more concerned about a timeline for the approval.

Responding to their concerns, Seyffart noted that he does not see the tendency for such to happen anytime soon. In one of such replies, he acknowledged that a SOL ETF endorsement would eventually play out. However, citing a feasible timeline, he noted that happenings in the next few days would help decipher if the approval will happen in August 2025. If it lingers beyond next August, chances abound that it could extend to late 2025 or even 2026.

Yes — eventually. Will know within the next few days if it potentially happens as early as August orrrrr if they have to wait till later 2025 or into 2026.

— James Seyffart (@JSeyff) December 3, 2024