Grayscale Investments has officially submitted an application to the U.S. Securities and Exchange Commission (SEC) to convert its Solana Trust (GSOL) into an exchange-traded fund (ETF), marking a significant step in the race for Solana-based financial products. The application was filed through NYSE Arca, which aims to list the ETF, following a recent surge in institutional interest surrounding Solana.
This move comes on the heels of several other asset managers entering the Solana ETF space. Last week, Bitwise became the fourth firm to submit its regulatory filings for a Solana ETF, joining Canary Capital, which applied in October, and VanEck and 21Shares, who filed earlier in June. The increasing number of applications reflects a broader trend of institutional players recognizing the potential of Solana as a viable investment option.
Grayscale’s Solana Trust, launched in 2021 as the company’s 16th investment vehicle, currently holds approximately $134 million in assets under management. The trust’s conversion to an ETF follows Grayscale’s successful transitions of its Bitcoin and Ethereum trusts into ETFs earlier this year, showcasing the firm’s strategy to capitalize on evolving market dynamics.
Solana has experienced remarkable growth in 2024, with its value surging by 270% since January. The cryptocurrency recently reached an all-time high of $263, buoyed by heightened investor interest and favorable market conditions. Bitwise CEO Hunter Horsley noted that SOL is seen as “an incredible emerging asset,” suggesting that investors seeking opportunities beyond Bitcoin may find Solana appealing.
Analysts have pointed to the resilience of the Solana ecosystem, particularly through the popularity of memecoins associated with the blockchain. BRN analyst Valentin Fournier remarked that while the current memecoin frenzy might not withstand a bear market, it has fostered a strong community that sustains high transaction levels. Platforms like Pump.fun are witnessing record-breaking active addresses and a growing user base, indicating robust engagement within the Solana network.
As Grayscale moves forward with its ETF application, it underscores a pivotal moment for Solana as it seeks to establish itself as a mainstream asset class within the cryptocurrency landscape.
