In a major 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 Thursday by Bitcoin ETF issuer and asset manager VanEck, indicating growing interest in Solana as a potential competitor for 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 submitis designed to issue common shares of beneficial interest traded on the Cboe BZX Exchange.
The 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 hold SOL and value its shares daily.
The Trust will be sponsored by 21Shares, with CSC Delaware Trust Company serving as trustee. Coinbase Custody Trust Company will act as custodian of the SOL and will hold all SOL of the Trust on its behalf.
SOL Price Consolidates After Initial ETF Announcement
While the SEC’s approval of a Solana ETF is subject to regulatory oversight and compliance, these documents demonstrate the increasing demand for investment products that expose Solana’s digital assets.
If approved, the ETFs would provide investors with a regulated and accessible way to participate in Solana’s potential growth and performance.
In particular, this could be the start of new filings with the SEC by the world’s largest asset managers, as has already been the case with Bitcoin and Ethereum ETFs.
Nevertheless, SOL has not had the same reaction as Thursday with VanEck’s announcement of its Solana ETF filing, sending SOL’s price to a 9% recovery towards $150 after a dip to $121 earlier this week. Now SOL is trading at $142 due to a 4% price correction in the last 24 hours.
Featured image of DALL-E, chart from TradingView.com
