Grayscale filed with the U.S. Securities and Exchange Commission to convert Solana Trust into an ETF. It comes amid a growing adoption of Solana (SOL) by institutional investors as other asset management firms file a similar report.
A surge in Solana ETF applications
Not only is Grayscale going after a Solana ETF. Several companies have filed with the SEC to launch spot Solana ETFs. Among them are VanEck, 21Shares, Bitwise, and Canary Capital.
Approval by the SEC of such ETFs would be a big thing for crypto as it rates Solana’s usability for institutional investors. Grayscale is applying to turn its Solana Trust into a spot ETP, opening it to more investors in a regulated environment.
The growing impact of ETF applications
Anticipation over the ETF filings has already caused the SOL price to have a positive reaction. On the same day as Grayscale announced plans to add Solana, SOL skyrocketed nearly 5%, showing investors are optimistic. SOL is currently trading at $237.05, with a 24-hour trading volume of $8.58 billion.
If the SEC approves Grayscale’s filing, Solana will join Bitcoin and Ethereum in elite institutional investment products in the U.S. market. All this comes as altcoins such as SOL are gaining popularity, and some in the crypto sphere already forecast an ‘altcoin season’ as a result of ETF approvals.
A rising trend in cryptocurrency ETFs
Other altcoins too are following in Solana’s path when it comes to ETF developments. That came on the heels of a filing by WisdomTree for an XRP ETF, as well as applications for XRP ETFs by firms including VanEck and 21Shares. These developments reflect rising demand for regulated cryptocurrency investment products, potentially catalyzing future market growth.
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