The New York Stock Exchange has filed with the SEC to create an ETF based on Grayscale’s Solana Trust. This request adds to several other requests for Solana and XRP ETFs in recent days.
With Bitcoin dominance declining over the past month, the crypto community is already anticipating an altcoin season, and the SEC’s approval of these ETFs could significantly intensify the bullish momentum.
Solana ETF from Grayscale
With this filing, Grayscale wants to convert its SOL mutual fund into a Solana ETF, similar to what the company did with its original Bitcoin ETF. Additionally, Grayscale now joins at least four other companies that applied for a Solana ETF from the SEC in November. These include VanEck, 21Shares, Bitwise and Canary Capital.
The Sponsor (Grayscale) therefore believes that allowing the Trust Shares to be listed and traded on the Exchange as an ETP (i.e., converting the Trust into a spot SOL ETP) would provide other investors with a safe way to invest in SOL on a regulated national securities exchange, the filing said.
Furthermore, in late November, the SEC held quiet talks on a SOL ETF, and the talks appeared to be progressing. If approved, Solana would be the third cryptocurrency to gain institutional investment exposure in the US, following Bitcoin and Ethereum. Solana’s price has already reacted positively to the news, with SOL up nearly 5% on the day.
However, if the SEC were to approve this ETF product, it would open up a new regulatory approval milestone. VanEck and 21Shares filed for their own Solana ETFs the day after these rumors surfaced, and Grayscale is joining the group. Since the filing, Solana’s price has surged.
Solana price throughout Tuesday, November 3. Source: TradingView
Altcoin ETFs outlook and regulatory influence in the US
However, Solana is not the only altcoin with ETF prospects. Four asset management firms have also filed XRP ETF applications with the SEC. Most recently, WisdomTree filed an XRP ETF application, naming Coinbase as the fund’s custodian.
Overall, the crypto industry is expecting a friendlier regulatory apparatus in the US under Donald Trump’s second term. Yesterday (3), Trump reportedly offered the position of SEC Chairman to an industry ally, signaling more beneficial policies. In other words, ETF issuers anticipate that the SEC may approve several new ETF products in the coming year.
If institutional investment follows suit with Bitcoin ETFs, these approvals would likely trigger a significant bull market for altcoins. Furthermore, some experts are already calling for a new altcoin season, with Changpeng “CZ” Zhao hinting at it yesterday (3). New SEC approvals for multiple altcoin ETFs could significantly intensify these already existing trends.
The article NYSE and Grayscale file for Solana ETF with SEC appeared first on BeInCrypto Brasil.
