Grayscale focuses on Solana: request for spot ETF to the SEC

Grayscale Investments advances towards new horizons with the request to the SEC for a spot ETF on Solana. This strategic move strengthens the competition among the big names in the digital asset sector in the United States.

Let’s see all the details in this article. 

The race for spot ETFs: Grayscale challenges competitors on Solana’s ground

Grayscale Investments, one of the global leaders in digital asset management, has officially submitted a request to the United States Securities and Exchange Commission (SEC) for the launch of a spot ETF on Solana. 

This new product, named Grayscale Solana Trust (ticker: GSOL), represents a further step in the company’s expansion strategy towards innovative financial instruments linked to the world of cryptocurrencies.

The ETF would be a conversion of the current Grayscale Solana Trust into a spot ETF, similar to previous transformations carried out by the company for its funds on Bitcoin and Ethereum.

According to the documents filed with the SEC on December 3, the GSOL ETF would be listed on the New York Stock Exchange, further strengthening Grayscale’s presence in the U.S. market.

According to the 19b-4 filing, the Grayscale Solana Trust is currently the largest investment fund in the world dedicated to Solana, with assets under management of approximately 134.2 million dollars.

This makes it a key player in the sector, with a share of 0.1% of all SOL tokens in circulation held by the fund.

The structure of the new ETF involves the participation of Coinbase Custody as the main custodian and BNY Mellon Asset Servicing as the administrator and transfer agent. 

These collaborations emphasize Grayscale’s commitment to ensuring the utmost security and reliability for investors.

The competition in the ETF market

The initiative of Grayscale fits into a context of growing competition in the market of ETFs linked to cryptocurrencies. 

Other big names, like 21Shares, Canary Capital, VanEck, and Bitwise, have already submitted similar proposals for spot ETFs on Solana. Franklin Templeton, one of the giants of traditional finance, is also considering the introduction of a similar product.

The interest in Solana is not surprising, considering that its price has increased by 277% in the last year, with a market capitalization that has exceeded 112 billion dollars. 

This exponential growth has made Solana one of the most attractive cryptocurrencies for bull investors and institutions.

The approval procedure

To proceed with the listing of GSOL on a public exchange, Grayscale will need to obtain approval for both the 19b-4 filing and an S-1 registration statement. 

This document represents a crucial step, as it defines the rules and requirements for the public offering of the ETF.

The request to modify the rules, submitted via form 19b-4, is a fundamental element in the SEC approval process. 

It indeed informs the self-regulatory organization, such as a stock exchange or a financial supervisory authority, of Grayscale’s proposal.

The decision of Grayscale to focus on a spot ETF on Solana reflects the growing maturity of the cryptocurrency market and the willingness to attract an increasing number of institutional investors. 

We remind you that a spot ETF provides direct exposure to the price of the underlying asset, in this case Solana, without the need to directly purchase the tokens.

If approved, the Grayscale Solana Trust could pave the way for further innovations in the sector, offering investors easier and regulated access to cryptocurrencies.