The Race for a Spot Solana ETF Heats Up: Industry Insights and Updates
The cryptocurrency landscape is witnessing a surge of interest in the development of Solana Exchange-Traded Funds (ETFs). Several prominent asset management firms are actively submitting applications to launch these funds, signaling a growing demand within the sector. As the approval deadline approaches, 21Shares has taken decisive action to enhance its spot Solana ETFs.
21Shares Revamps Spot Solana ETF Proposal
In a noteworthy advancement for both the Solana ecosystem and the wider crypto market, 21Shares has resubmitted a refined version of its Spot Solana ETF application. This strategic move underscores a strong commitment to introducing SOL-centric investment options to traditional financial markets.
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According to SolanaFloor, a leading source for Solana-related updates, this significant step reflects the increasing momentum among asset managers to develop crypto ETFs beyond the well-known Bitcoin and Ethereum offerings. As 21Shares seeks approval from the US Securities and Exchange Commission (SEC), the revised proposal aims to fortify the application by addressing regulatory considerations, particularly with regard to in-kind redemptions.
Sponsored by 21Shares US LLC, formerly known as Amun Holdings Limited, the 21Shares Core Solana ETF (the Trust) is an exchange-traded fund listed on the Cboe BZX Exchange, Inc. (the Exchange). The Trust issues common shares of beneficial interest (the Shares) and utilizes the Pricing Benchmark to establish the daily value of its shares. Importantly, the Trust offers investors indirect exposure to the SOL market through a conventional brokerage account, circumventing direct engagement with the spot market’s volatility.
Per the application, all of the Trust’s SOL holdings will be managed by the SOL Custodian, Coinbase Custody Trust Company, LLC. Unlike traditional financial institutions, the Custodian is protected by private insurance companies and not insured by the Federal Deposit Insurance Corporation (FDIC).
A Growing Number of Companies Enter the Solana ETF Arena
In the race to launch a Spot Solana ETF, numerous companies have filed applications with the US SEC. The latest to join this movement is the Cboe BZX Exchange, which recently submitted a proposal to list the Invesco Galaxy SOL ETF on its platform.
A few days prior, Cboe BZX filed to introduce the Invesco Galaxy SOL ETF, a commodity-based trust under BZX Rule 14.11, designed to offer regulated access to SOL with integrated staking incentives. This initiative follows closely on the heels of the first Solana Staking ETF launch in the United States.
If granted approval by the Commission, the Invesco Galaxy SOL ETF will be among the pioneering Solana spot ETFs available in the US market. The authorization would allow for both cash and in-kind creations and redemptions, paving the way for broader investor participation.
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