21Shares Files for Spot Solana ETF Amid Growing Interest in Solana Investments
Asset manager 21Shares has made a significant move by filing for a spot Solana exchange-traded fund (ETF), in a bid to tap into the increasing interest in Solana investments. This marks the second application for a Solana ETF from a major firm within a week, following a similar move by VanEck.
The proposed 21Shares Core Solana ETF is structured to mirror the performance of Solana (SOL) by aggregating the notional value of SOL trading activity across major spot exchanges, as outlined in the S-1 registration form submitted to the US Securities and Exchange Commission (SEC). Coinbase Custody Trust Company is set to act as the custodian for the ETF.
While VanEck’s application on June 27 led to a 7% rise in SOL’s price, 21Shares’ filing did not have an immediate impact on the token’s price, which was trading at $140.2 at press time, marking a 6% decline on the day.
In addition to the US filings, Canadian fund manager 3iQ had also filed for a spot Solana ETF earlier in June, aiming to roll out the initial product of its kind in North America on the Toronto Stock Exchange. These moves signal a growing confidence and interest in Solana among institutional investors.
The surge in interest around Solana ETFs comes amidst speculations of forthcoming regulatory changes and increased acceptance within the crypto market. However, the absence of a Solana futures product is perceived as a potential obstacle for approval. Yet, some experts believe that a change in leadership could smoothen the process.
Eric Balchunas, senior ETF analyst at Bloomberg, suggested that the approval likelihood of a Solana ETF closely hinges on potential shifts in the US presidency and regulatory outlook. Following the approval of spot Ether ETFs in May, the SEC’s decision to discontinue its investigation into Ethereum 2.0 hinted at a possible shift in the agency’s stance toward certain digital assets.
Despite the uncertain regulatory landscape, many in the industry see Solana as a strong contender for ETF approval due to its increasing prominence in the crypto market. CNBC’s Brian Kelly and VanEck’s head of digital research, Matthew Sigel, have both expressed optimism about the potential for Solana to receive ETF approval, likening it to established digital commodities like Bitcoin and Ether.
As the crypto market evolves and regulatory frameworks adapt, the possibility of spot Solana ETFs becoming a reality appears more promising. Investors and market watchers are eagerly keeping an eye on these developments, anticipating significant implications on market dynamics and investment opportunities.
