Grayscale, a leading crypto asset manager, has recently filed a 19b-4 submission to the U.S. Securities and Exchange Commission (SEC) with the intention to convert its Solana Trust into a spot exchange-traded fund (ETF).
The Solana Trust, a subsidiary of the Digital Currency Group (DCG), currently stands as the largest Solana investment fund in terms of assets under management (AUM). With $134.2 million worth of SOL under its management, the trust represents approximately 0.1% of all Solana tokens in circulation.
Grayscale’s move to list the Solana Trust as an ETF is aimed at closely tracking the value of the underlying crypto asset. The company believes that this conversion to a spot SOL ETF would provide a secure and regulated investment avenue for other investors.
Notably, Grayscale is not alone in its pursuit of offering Solana ETFs. Investment giant VanEck has also submitted an S-1 registration statement to the SEC, becoming the first company in the U.S. to apply for a SOL ETF. Other firms like 21Shares, Canary Capital, and Bitwise are also seeking approval to launch their own Solana ETFs.
Matthew Sigel, head of digital assets research at VanEck, previously mentioned that the filing was a strategic move anticipating the outcome of the presidential election. This signifies a growing interest and competition among asset managers to tap into the potential of Solana as a lucrative investment option.
As the cryptocurrency market continues to evolve, the emergence of Solana ETFs could open up new opportunities for investors to participate in the digital asset space through regulated and easily accessible investment vehicles.
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