- Grayscale filed a registration statement to convert its Solana Trust (GSOL) to an ETF on NYSE Arca, following its December 19b-4 submission.
- The proposed Solana ETF would not participate in staking, similar to how spot Ethereum ETF applications removed staking language before approval.
- Solana is considered a likely candidate for ETF approval under new SEC leadership, with price trading around $114.50 on Friday.
Grayscale filed a registration statement on Friday to convert its Solana Trust (GSOL) into an exchange-traded fund (ETF) that would trade on NYSE Arca. This move follows the company’s December submission of a 19b-4 form for its Solana trust, representing another step in Grayscale’s ongoing strategy to increase Wall Street investors’ access to cryptocurrency investments.
The filing comes just one day after the SEC recognized Fidelity’s application for a spot Solana ETF, indicating growing regulatory engagement with cryptocurrency investment products beyond Bitcoin and Ethereum. Analysts have suggested that Solana stands among the most likely cryptocurrencies to receive regulatory approval for ETF status.
No Staking in Proposed ETF
According to Friday’s registration statement, the proposed Grayscale Solana ETF would not engage in staking activities with the underlying Solana tokens. “No action will be taken pursuant to which any portion of the Trust’s SOL becomes subject to the Solana proof-of-stake validation or is used to earn additional SOL,” the filing stated.
This approach mirrors strategies used by ETF issuers during the spot Ethereum ETF approval process last year, when Grayscale, Fidelity, and Ark Invest/21 Shares all removed staking language from their applications. Asset managers made these changes to address concerns from former SEC Chair Gary Gensler’s administration, which viewed proof-of-stake networks as potentially qualifying as securities.
Market Conditions and Outlook
Solana was trading at approximately $114.50 on Friday, showing a modest 0.4% decrease over 24 hours, according to data from CoinGecko. The cryptocurrency had fallen to a 13-month low on Thursday amid market volatility connected to U.S. President Donald Trump‘s trade policies.
The push for spot cryptocurrency ETFs gained significant momentum after the SEC approved spot Bitcoin and Ethereum ETFs in 2023 and 2024. These approvals established a regulatory pattern that could benefit additional cryptocurrency investment products. Asset managers now hope to expand cryptocurrency ETF options beyond the two largest cryptocurrencies, allowing investors to gain diversified exposure to digital assets through conventional brokerage accounts.
The current SEC administration, viewed as more crypto-friendly than its predecessor, along with Solana’s regulated futures market in the U.S., may improve prospects for approval of these new ETF applications.
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