Grayscale, a leading crypto asset manager, has taken a significant step towards converting its Solana Trust into a spot exchange-traded fund by submitting a 19b-4 filing to the U.S. Securities and Exchange Commission (SEC). The Digital Currency Group (DCG) subsidiary’s Solana Trust currently stands as the largest Solana investment fund by assets under management (AUM), managing a substantial $134.2 million worth of SOL, which accounts for roughly 0.1% of all Solana in circulation.
The decision to seek approval to list the Solana Trust as an ETF comes as Grayscale aims to closely track the value of the underlying crypto asset. In their filing, Grayscale stated, “The Sponsor thus believes that allowing Shares of the Trust to list and trade on the Exchange as an ETP (i.e., converting the Trust to a spot SOL ETP) would provide other investors with a safe and secure way to invest in SOL on a regulated national securities exchange.”
This move by Grayscale follows a trend in the asset management industry, with other companies like VanEck also filing applications to offer Solana ETFs to their customers. VanEck notably submitted an S-1 registration statement to the SEC back in June, making them the first company in the US to apply for a SOL ETF. Matthew Sigel, the head of digital assets research at VanEck, expressed confidence in their filing, likening it to a strategic bet on the future outcome of the presidential election.
Apart from Grayscale and VanEck, other firms such as 21Shares, Canary Capital, and Bitwise are also seeking approval to launch their own Solana ETFs, highlighting the growing interest in offering investment products tied to the popular blockchain network.
As the crypto asset management landscape continues to evolve, investors are presented with new opportunities to gain exposure to digital assets through regulated and secure channels. The move towards converting the Solana Trust into an ETF underscores the increasing demand for innovative investment products in the cryptocurrency space.
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