NYSE and Grayscale: Solana ETF Files with SEC
December 4, 2024
The New York Stock Exchange has filed an application with the Securities and Exchange Commission to create an exchange-traded fund based on Grayscale’s Solana Fund. This application joins several other Solana and XRP fund applications in recent days.
With Bitcoin’s dominance waning over the past month, the crypto community is already anticipating altcoin season, and the SEC’s approval of these funds could significantly intensify the bullish momentum.
Grayscale Fund for Solana
With this filing, Grayscale wants to convert its SOL mutual fund into a Solana exchange-traded fund, similar to what the company did with its original Bitcoin ETF. Grayscale now joins at least four other firms that filed for a Solana ETF with the SEC in November. These include VanEck, 21Shares, Bitwise, and Canary Capital.
“The Sponsor (Grayscale) believes that allowing the Fund’s shares to be listed and traded on an exchange as an exchange-traded product (i.e., converting the Fund into an SOL spot exchange-traded product) will provide other investors with a safe and secure way to invest in SOL on a regulated national exchange,” the filing said.
In late November, the SEC quietly negotiated an exchange-traded fund (ETF) for SOL, and the talks appeared to be progressing. If approved, Solana would be the third cryptocurrency to receive institutional investment exposure in the United States, after Bitcoin and Ethereum. Solana’s price has already reacted positively to the news, with SOL up about 5% on the day.
If the SEC approves the product, it would open a new phase of regulatory approval. VanEck and 21Shares filed their own applications for Solana ETFs the day after the rumors, and Grayscale is joining the party. Solana’s price has soared since the filing.
However, Solana isn’t the only altcoin with ETF prospects. Four asset management firms have also filed for an XRP ETF with the SEC. Most recently, WisdomTree filed for an XRP ETF, naming Coinbase as the trustee of the fund.
The crypto industry in general is anticipating a more friendly U.S. regulatory system under Donald Trump’s second term. Earlier today, Trump reportedly offered the SEC chairmanship to an industry ally, signaling other favorable policies. In other words, ETF issuers are expecting the SEC to approve several new ETF products next year.
If institutional investment follows the same trend as Bitcoin ETFs, these approvals could potentially lead to a major altcoin bull market. Some experts are already declaring a new altcoin season, with Changpeng “CZ” Zhao hinting at just that earlier today. The SEC’s new approvals for several altcoin ETFs could intensify these existing trends.