The Solana ETF will directly track SOL, the native cryptocurrency of the Solana blockchain network. CoinShares joins a list of firms that have recently applied for such a license with the increasing demand to issue crypto-based financial products. It follows seven other fund managers who this month updated their applications to track Solana ETFs.
European cryptocurrency management firm CoinShares filed a formal application with the U.S. Securities and Exchange Commission this Friday. CoinShares is to unveil a Solana-based exchange-traded fund that will track the performance of cryptocurrency SOL. CoinShares is to list the ETF on the Nasdaq Stock Market, its S-1 prospectus that was filed with the SEC indicates.
The revised filings of competitors, including 21Shares, Bitwise, Grayscale, Fidelity, VanEck, Canary Capital, and Franklin Templeton, included staking procedures. These amendments allow the funds to potentially stake SOL and pay shareholders passive income, something investors are looking forward to. Despite these amendments that reflect strategic planning, however, this does not yet ensure SEC clearance.
Solana’s price rises amid ETF speculation
Bloomberg ETF analyst Eric Balchunas earlier stated a 70 percent probability that the SEC would approve proposals for Solana ETFs this year. However, the agency hasn’t issued a specific timeline. Recently, the SEC delayed its consideration process on applications filed by 21Shares, VanEck, Bitwise, and Canary Capital, explaining that it aims to study related legal and policy matters.
Sol ranks as the sixth most capitalized cryptocurrency and attracts developers for its speed and efficient infrastructure. Blockchain developers value Solana for powering decentralized apps and gaming platforms.
The price of SOL rose to \$156.87 this week, having appreciated by 4 percent within the last 24 hours. Earlier, the token reached a historical high of \$293.31 last January, CoinGecko reported.
The SEC has also approved Bitcoin- and Ethereum-based ETFs, a sign of shifting attitudes regarding crypto-based products. With billions so far invested in such funds, CoinShares and other companies anticipate favorable regulatory results on behalf of Solana ETFs.
