Grayscale files S-1 for spot Solana ETF with SEC, staking excluded

Grayscale's Solana ETF seeks to simplify crypto investment pathways through innovative financial structures.

Key Takeaways

• Grayscale filed an S-1 with the SEC to launch a spot Solana ETF on NYSE Arca.
• The trust will track SOL's price using the CoinDesk Solana Price Index.

<?xml encoding="UTF-8">

Grayscale has filed a Form S-1 with the SEC to launch a spot Solana ETF.

The filing, dated April 4, reveals the firm plans to rename its existing Solana Trust (GSOL) as “Grayscale Solana Trust ETF” and list it on NYSE Arca under the ticker “GSOL.”

The trust will hold Solana’s SOL tokens and aims to track SOL’s price through the CoinDesk Solana Price Index (SLX). Coinbase will serve as the prime broker and custodian, while Bank of New York Mellon will act as a transfer agent and administrator.

The filing indicates that the trust will initially only accept cash orders for the creation and redemption of shares, requiring authorized participants to use liquidity providers to acquire or sell the underlying SOL. In-kind creation and redemption may be added later, pending regulatory approval.

The trust will not participate in Solana staking or handle any SOL forks or airdrops. Grayscale will charge a management fee, taken in SOL, at an undisclosed annual rate based on net asset value.

As of April 3, SOL had a market value of $59 billion and was the seventh largest digital asset by market cap, with approximately 514 million coins in circulation and $4.7 billion in 24-hour trading volume, per CoinGecko.

The S-1 comes after NYSE Arca filed the 19b-4 application for the Grayscale Solana ETF last December, proposing to convert the Grayscale Solana Trust into an exchange-traded fund.

The SEC formally acknowledged the filing on February 6.

Disclaimer