In summary
- Grayscale submitted a proposal to convert its Solana Trust (GSOL) into a spot ETF, improving investor access to SOL on NYSE Arca.
- The Grayscale trust manages $134.2 million in assets, representing 0.1% of all SOL in circulation, with conversion to ETFs planned to increase liquidity.
- Rumors about Paul Atkin’s pro-crypto SEC chairmanship and the success of other Cryptocurrency spot ETFs are fueling optimism about the possible approval of a Solana ETF.
Grayscale Investments has filed a proposal with the U.S. Securities and Exchange Commission (SEC) to convert its Solana Trust (GSOL) into a spot ETF that will be listed on the NYSE Arca.
The move seeks to improve investor access to Solana (SOL) by allowing the trust’s shares to trade as an ETF on a regulated market, according to a 19b-4 filing Tuesday.
Grayscale, which currently operates the trust as an over-the-counter (OTC) product, said the conversion to an ETF would improve SOL’s price tracking and eliminate inefficiencies caused by its unlisted structure.
Grayscale’s filing is the latest of several requests from crypto asset managers to offer Solana spot ETFs in the United States, shortly after the re-election of pro-crypto President-elect Donald Trump last month reignited investor interest in digital assets.
VanEck and 21Shares filed applications to issue Solana spot ETFs last summer, while Canary Capital applied to launch a Solana-based ETF in October. Meanwhile, Bitwise Asset Management made moves toward filing for a Solana spot ETF last month.
An ETF is a type of financial instrument that allows the price of a particular asset to be tracked by holding that asset in reserve. A Solana spot ETF would allow institutional and retail investors to gain exposure to Solana without requiring them to hold the token themselves.
Grayscale said its Solana Trust manages $134.2 million in assets, representing 0.1% of all SOL in circulation, according to the filing. The trust’s shares currently trade under the symbol “GSOL” on OTC markets.
Still, Grayscale noted that it expects the ETF’s listing to increase liquidity and align the trust with other mainstream financial products. This follows Grayscale’s successful conversion of its Bitcoin Trust (GBTC) into a spot Bitcoin ETF in January, followed by its Ethereum Trust (ETHE) into a spot Ethereum ETF in July.
Cryptocurrency-based spot ETFs have gained momentum in recent months amid a shift in regulators’ attitude toward digital assets in the United States, with Bitcoin spot ETFs and their Ethereum-based counterparts gaining approval to list early of this year.
These developments have fueled investor hopes that Solana’s spot ETFs could also soon gain federal regulatory approval to begin trading in the United States.
Additionally, adding to investor optimism about the likelihood of Solana spot ETF approvals are rumors that former pro-cryptocurrency regulator Paul Atkin is Trump’s favorite to chair the SEC. Politico first reported the news last week.
At the time of writing, Solana is trading 5% higher on the day at $235, according to data from CoinGecko.
Edited by Sebastian Sinclair
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