Grayscale Investments Eyes Solana ETF Amid Rising Pro-Crypto Regulations
Grayscale Investments has recently taken a significant step forward by filing for a Solana Exchange-Traded Fund (ETF) with the New York Stock Exchange (NYSE). This move comes amid an increasing wave of pro-cryptocurrency regulations under the leadership of President Donald Trump, marking a pivotal moment in the financial landscape.
The Proposed Solana ETF by Grayscale
According to the details shared in the NYSE’s official posting of the 19b-4 Form, the proposed Solana Trust stands as the largest investment fund centered around Solana worldwide. With assets under management valued at approximately $134.2 million, this fund represents about 0.1% of all circulating Solana (SOL). However, it is important to note that the Trust is currently not classified as an exchange-traded product (ETP), a factor that has reportedly impacted its shares from accurately mirroring the underlying value of SOL.
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Grayscale Investments is optimistic that transforming the Trust into a spot Solana ETF will provide investors with a more secure and regulated investment option, allowing them to trade on recognized national securities exchanges.
Joining the Race for Spot ETFs: Focus on Litecoin
The Trust is established as a Delaware statutory trust, and its operations are governed by a trust agreement between Grayscale as the Sponsor and the Delaware Trust Company as the Trustee. Coinbase Custody Trust Company takes on the role of Custodian, while BNY Mellon Asset Servicing is anticipated to serve as the administrator and transfer agent. Foreside Fund Services is responsible for managing the distribution and marketing efforts.
The investment aim of the Trust is to ensure that the value of its shares aligns with the value of the SOL held, after accounting for expenses and liabilities. While investing in the shares does not equate to a direct purchase of SOL, they are structured to offer a cost-effective and convenient alternative for investors seeking exposure to this digital asset.
Apart from the Solana ETF proposal, Grayscale has also submitted an application for a spot Litecoin ETF. This strategic move aligns Grayscale with other firms such as Canary Capital and CoinShares, who have recently made similar applications.
The recent filing for a Solana ETF by Grayscale has had a positive impact on the market, with the price of SOL witnessing a notable increase of 3.5%, reaching back to the $258 mark.
