Prominent cryptocurrency asset manager Grayscale Investments has submitted a 19b-4 form with the U.S. Securities and Exchange Commission (SEC) to list a spot Solana exchange-traded fund on the New York Stock Exchange.
A spot Solana ETF could allow institutional investors to gain exposure to the native cryptocurrency of the smart contract platform through a regulated, easy-to-access fund without having to manage any private keys.
Spot Bitcoin and Ether ETFs are currently already traded on U.S. exchanges, and have added significant buying pressure to both cryptocurrencies, with BTC surpassing $100,000 for the first time last year, the year spot BTC ETFs were launched.
The recent filing reveals Grayscale’s intention to convert its existing Solana Trust into a spot ETF. The proposed trust currently holds approximately $134.2 million in assets under management, making it the largest Solana investment fund globally, according to the filing. This represents a small fraction, roughly 0.1%, of the total Solana in circulation.
BREAKING: @Grayscale files 19B-4 form for @Solana Spot ETF with NYSE (New York Stock Exchange). pic.twitter.com/355pUPSJYC — SolanaFloor (@SolanaFloor) January 24, 2025
Currently, the trust operates as an over-the-counter product, which can lead to discrepancies between its share price and the actual value of the underlying SOL tokens as investors are subject to a 12-month lockup period before being able to sell their shares.
Notably, traders on the popular prediction market Polymarket have been increasingly betting on a spot Solana ETF being approved this year, with chances for such a product going live now being around 89%, up from 77% earlier in the month.
A spot Solana ETF is now considered a strong possibility due to an upcoming leadership shift at the SEC. Under the Biden administration, the SEC was often viewed as hostile toward the cryptocurrency sector, frequently accused of regulating through enforcement actions.
However, with the anticipated Trump administration, which has campaigned on a pro-crypto platform, the SEC is expected to adopt a more favorable stance toward the crypto ecosystem. Reports suggest the new administration plans to prioritize cryptocurrency.
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