Grayscale is joining the race to launch a Solana ETF, following the footsteps of Bitwise, VanEck, 21Shares, and Canary Capital. The company has filed a 19b-4 with NYSE Arca to convert its existing Solana Trust (GSOL) into an exchange-traded fund, making it the fifth asset manager to do so this year.
The Solana Trust was launched by Grayscale in 2021 as its 16th investment product and currently holds $134 million in assets under management. With the recent surge in Solana’s price, up over 130% year-to-date, it seems like a strategic move for Grayscale to capitalize on the growing popularity of the blockchain platform.
Grayscale has already successfully converted its Ethereum and Bitcoin trusts into ETFs earlier this year, so this move to convert the Solana Trust seems like a natural progression for the company. The filing with NYSE Arca is a necessary step in the process, as it informs the SEC of the proposed rule change by the exchange.
The decision to launch a Solana ETF comes at a time when the crypto market, including Solana, is experiencing significant growth. The election of Donald Trump in early November has also contributed to a more favorable regulatory environment for the industry, further boosting investor confidence in digital assets like SOL.
The news of Grayscale’s entry into the Solana ETF space has already had a positive impact on the price of SOL, which jumped about 3% following the filing. With the increasing interest in blockchain technology and decentralized finance, it will be interesting to see how Grayscale’s ETF will perform in the market and what it will mean for the future of digital asset investing.