In summary
- Canary Capital, has filed to launch a Solana exchange-traded fund (ETF), joining established firms such as VanEck and 21Shares.
- Canary Capital filed the S-1 filing for the proposed Solana ETF with the Securities and Exchange Commission (SEC).
- SOL, the fifth-largest Cryptocurrency, has seen a 400% increase in value over the past year, with a market capitalization of $82 billion.
A new digital asset manager has filed to launch a Solana exchange-traded fund (ETF), joining a growing group of hopefuls that also includes established firms VanEck and 21Shares.
Canary Capital—which this month filed with the Securities and Exchange Commission (SEC) for XRP and Litecoin products—made the S-1 filing for the proposed Solana ETF.
An ETF is a popular investment vehicle that is traded on stock exchanges. If the SEC were to approve Canary’s Solana ETF, investors could buy stocks that track the price of SOL, and gain exposure to the currency without having to buy and store cryptocurrency.
SOL is the fifth largest digital asset. Its native Blockchain is used for decentralized applications (dapps), decentralized finance (DeFi), meme coins, and more. It is considered a key rival to Ethereum, the network behind ETH, offering cheaper and faster transactions.
The coin currently has a market capitalization of $82 billion, and has seen a 400% increase in value over the last year, with a current price of around $175.
“Despite the competitive L1 and EVM landscape, Solana has emerged as a battle-tested leader for decentralized applications,” Canary said in a statement. “Solana’s robust DeFi ecosystem has led to strong sustained on-chain analytics as measured by daily transactions. , active addresses and new addresses, maintaining a low rate environment for all consumers. Future growth in the deployment of native on-chain stablecoins will also likely further accelerate the dominant lead that Solana maintains over its peers.”
Canary Capital is a Nashville, Tennessee-based firm that launched in September. Its goal is to provide institutions with cryptocurrency trading and management solutions.
In January, the SEC approved Bitcoin ETFs and began trading the same month, while Ethereum ETFs were approved in May and began trading in July. But the regulator appeared reluctant to take such action, after 10 years of attempts to obtain approvals for Bitcoin funds, and the agency frequently sues cryptocurrency companies over accusations that they sell unregistered securities.
The SEC has specifically alleged that it believes SOL is an unregistered security. Analysts believe Solana ETFs will eventually be approved in the United States following recent approval gestures for Bitcoin and Ethereum funds, but the speed of such a move could depend on the outcome of next week’s US election. and how long Gary Gensler remains as chairman of the SEC.
VanEck and 21Shares filed their respective applications to launch a Solana spot ETF in June. Both firms also offer Bitcoin and Ethereum ETFs in the United States.
Edited by Andrew Hayward
Editor’s note: This story was updated after publication to add a comment from Canary Capital.
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