Grayscale proposed Solana ETF to the commission: filings

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As a seasoned analyst with over two decades of experience in the financial markets, I have witnessed the evolution of various investment instruments and trends. The proposed Solana ETF by Grayscale, if approved, marks yet another significant step in the mainstream adoption of cryptocurrencies.

The Solana Exchange-Traded Fund (ETF) is receiving increasing backing for approval in the U.S., with Grayscale joining other entities in submitting proposals to the regulatory body.

On December 3rd, Grayscale Investments, a leading manager in crypto-related assets, submitted a proposal for a Solana-based Exchange Traded Fund (ETF) to the Securities and Exchange Commission (SEC).

Based on a 112-page filing under 19b-4, Grayscale expresses significant interest in Solana, a globally recognized leader in the realm of both cryptocurrencies and blockchain technology.

In accordance with Section 19(b)(1) of the Securities Exchange Act of 1934, as amended, and Rule 19b-4 thereunder, NYSE Arca, Inc., also known as the “Exchange,” intends to list and trade shares for Grayscale Solana Trust (SOL). This Trust is referred to as the “Trust” in this document.

In 2021, a company headquartered in Connecticut introduced the Grayscale Solana Trust (GSOL), similar to other cryptocurrencies. Should this proposition be approved, they would have the authority to transform it into a Solana spot Exchange-Traded Fund (ETF).

This action mirrors a similar proposal made by 21Shares back in June, with firms like VanEck, Bitwise, and Canary Capital following suit, having presented their own versions of the product after the impressive performance of Bitcoin (BTC) and Ethereum (ETH) funds this year.

Before Grayscale Solana ETF

As a researcher delving into the realm of cryptocurrencies, I’ve noticed that Grayscale, leading the charge for the crypto-trust product, is widely recognized as the world’s largest manager of digital assets, even in Solana-based investments. According to their official statement, the trust boasts approximately $134.2 million in assets under management (AUM). This represents a minuscule 0.1% of the total value of Solana, offering a fascinating insight into the growing influence of Grayscale within the Solana ecosystem.

Additionally, they pointed out that a significant portion of Solana’s assets is owned by approximately 250,000 American investors. If approved, Grayscale would become the pioneering entity for issuing a Solana ETF, having previously managed the assets for the upcoming Solana spot ETF.

Over the past month, the value of Solana (SOL) in the cryptocurrency sector has risen by 44%, reaching $235. However, during the last week, Ripple‘s XRP managed to surpass Solana’s market cap after experiencing an impressive 81% growth spurt.

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2024-12-04 05:22