Grayscale Investments has filed for a Solana ETF with the New York Stock Exchange (NYSE), reflecting a growing wave of pro-crypto regulations under President Donald Trump.
Proposed Solana ETF By Grayscale
According to the NYSE’s official posting of the 19b-4 Form, the proposed Trust is the largest Solana investment fund globally, boasting approximately $134.2 million in assets under management. This figure represents about 0.1% of all Solana (SOL) in circulation.
Currently, the Trust is not listed as an exchange-traded product (ETP), which has reportedly hindered its Shares from closely tracking the underlying value of SOL.
Grayscale believes that converting the Trust into a spot Solana ETF will offer a safer and more secure investment vehicle for investors, enabling them to trade on a regulated national securities exchange.
Joins Competitors In Pursuing Spot ETFs For Litecoin
The Trust is structured as a Delaware statutory trust, and operates under a trust agreement between Grayscale as the Sponsor and the Delaware Trust Company as the Trustee.
Coinbase Custody Trust Company serves as the Custodian, while BNY Mellon Asset Servicing is expected to act as the administrator and transfer agent. The distribution and marketing efforts will be handled by Foreside Fund Services.
The investment objective of the Trust is to ensure that the value of its Shares reflects the value of the SOL held by the Trust, minus expenses and liabilities.
Though investing in the Shares does not equate to a direct purchase of SOL, they are designed to offer a cost-effective and convenient alternative for investors looking to gain exposure to this digital asset.
In addition to Grayscale’s Solana ETF application, the crypto asset manager has also filed for a spot Litecoin ETF, aligning itself with other firms like Canary Capital and CoinShares, which have recently made similar applications.
With Grayscale’s recent application for a Solana ETF, the price of SOL experienced a notable surge of 3.5%, reclaiming the $258 mark.
Featured image from DALL-E, chart from TradingView.com
