21Shares Joins Solana ETF Race After VanEck’s Filing

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As a seasoned crypto investor with a keen interest in exchange-traded funds (ETFs), I’m excited about the recent developments surrounding Solana (SOL) ETFs. The filing by 21Shares, a well-established investment firm, for a SOL ETF comes on the heels of VanEck’s application and confirms my belief that this is just the beginning.

Twenty-One Shares, an investment company, has submitted an S-1 document to the Securities and Exchange Commission (SEC) for approval to introduce a Solana (SOL) exchange-traded fund (ETF). This move comes after their rival VanEck filed for a similar product.

Two SOL ETF applications have been submitted within the past two days, with VanEck’s June 27 filing serving as a catalyst for this trend, according to analysts’ expectations.

As a researcher, I’d describe it this way: I currently work with 21Shares based in Zurich, where we manage over $846 million worth of assets in a physically-backed Solana Staking exchange-traded product. Additionally, we have a bitcoin ETF that is listed and traded on the Cboe BZX Exchange.

The 21Shares Core Solana ETF, analogous to the VanEck Solana Trust, is scheduled to begin trading on the Cboe BZX Exchange. Akin to other exchange-traded funds for commodities, investors can redeem their shares in this fund with Solana (SOL) tokens instead of cash.

As a crypto investor, I would explain it this way: I’ll keep my fund’s assets in separate wallets on the Solana Blockchain for enhanced security. I won’t participate in validating or staking SOL tokens to focus solely on investment strategies. My shares’ value is recalculated every 15 seconds during trading hours, while the total amount of SOL held by the fund is calculated daily at 4:00 p.m. Eastern Time.

When the declaration was made, Solana’s price stood at around $141 on the market, representing a nearly 5% decrease over the previous 24-hour period based on CoinMarketCap’s statistics.

Andrew Jacobson, the legal head at 21Shares, expresses excitement about the potential creation of a Solana-focused Exchange-Traded Fund (ETF) in the US. He emphasizes that this development is significant for the crypto industry and aligns with their objective to offer simple financial instruments linked to crypto assets.

Legal specialists have raised concerns that Solana ETFs could encounter hurdles in obtaining Securities and Exchange Commission (SEC) approval, given the lack of a regulated market for Solana futures contracts and the SEC’s past determination that Solana is classified as a security.

Despite this, Jacobson remains optimistic, emphasizing that the presence of a crypto token in a CME futures contract shouldn’t be the sole factor determining eligibility for an ETF.

As a researcher studying the developments in the world of exchange-traded funds (ETFs) related to Ethereum (ETH), I can share that on May 31, 2021, 21Shares submitted an application with the Securities and Exchange Commission (SEC) for a spot Ethereum ETF, named the 21Shares Core Ethereum Trust. This came after ARK Invest ended their partnership on the initial application. The SEC approved the 19b-4 filing for this ETF on May 23, 2021. At first, the partners had planned to offer an Ethereum ETF with staking capabilities. However, they later revised their plans and decided to focus on a spot product instead.

Twenty-One Shares’ swift application for a Solana Exchange-Traded Fund (ETF), spurred by VanEck’s lead, underscores the intensifying competition in the crypto ETF sector. This development could encourage more players to enter the market, potentially driving wider acceptance and increased regulatory scrutiny.

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2024-06-28 23:32