If approved, the ETF will trade under the ticker symbol GSOL on the New York Stock Exchange.
Source: cryptoslate
Compiled by: Blockchain Knight
Grayscale Investments has submitted an application to the U.S. Securities and Exchange Commission (SEC) to convert its Grayscale Solana Trust into an ETF, taking another step to expand its influence in the digital asset market.
If approved, the ETF will trade under the ticker symbol GSOL on the New York Stock Exchange, providing investors with the opportunity to invest directly in Solana (SOL), one of the fastest-growing blockchain platforms in the crypto ecosystem.
This document submitted in the form of a 19b-4 application marks Grayscale's continued push to convert its existing crypto asset trust funds into fully regulated ETFs.
The company's flagship products, BTC and ETH investment products, have achieved this goal and are now trading as spot ETFs following SEC approval earlier this year.
According to the submitted documents, the Grayscale Solana Trust is currently the largest Solana investment fund in the world, managing approximately 134.2 million dollars in assets as of the submission date.
As of now, this news has led to a nearly 7% surge in SOL, reaching 238 dollars, before slightly retreating to 234 dollars.
Grayscale's move comes as asset management companies rush to launch the first spot Solana ETF.
Other participants, including 21Shares, Canary Capital, VanEck, and Bitwise, have submitted similar application documents, marking the beginning of a race for regulatory approval.
Interest in Solana is growing, reflecting its increasingly significant position in the crypto asset space, with rapid adoption and innovative technology driving its development.
Over the past year, Solana's value has skyrocketed by 275%, primarily due to its appeal as a scalable and cost-effective alternative to Ethereum.
Currently, Solana has a market capitalization of over 110 billion dollars, making it one of the largest crypto assets by market cap.
This rapid upward momentum has increased demand for investment products related to Solana, making the ETF a convenient entry point for both institutional and retail investors.
Despite the market's enthusiasm, the U.S. Securities and Exchange Commission has yet to approve any spot ETFs linked to Solana or similar tokens.
The agency's cautious stance towards crypto ETFs (especially spot products) arises from concerns about market manipulation, liquidity, and investor protection.
However, given the increasing maturity of the crypto asset market and advancements in regulation, especially under the incoming Trump administration, Grayscale and other issuers are optimistic that the U.S. Securities and Exchange Commission will eventually greenlight these products.
Grayscale positions its application as part of a broader effort to expand the use of digital assets through traditional financial products.
In an accompanying statement, the company emphasized the potential of the ETF to bridge the gap between 'institutional-grade investment opportunities' and 'individual investors seeking emerging technologies like blockchain.'
