Solana ETF Applications Surge Forward
Last Thursday marked a significant development in the cryptocurrency market with the announcement of the first application for an exchange-traded fund (ETF) based on solana (SOL). The asset manager submitting the application remains unnamed, but if approved, it would be a historic move, as ETFs typically focus on established cryptocurrencies like bitcoin and ethereum.
The news sent solana’s price soaring, with a 10% increase on the day of the announcement. While the price subsequently dropped by more than 6% on Friday, the development could have significant implications for the cryptocurrency market.
Second Application Surfaces
Joining the fray is 21Shares, which has submitted a second application for a solana ETF. The intended stock exchange fund, dubbed ’21Shares Core Solana ETF’, will operate as a spot ETF, holding the actual SOL coins as its underlying asset.
As with the first application, the 21Shares ETF will be listed on the Cboe BZX Exchange, with the related trust fund managed by CSC Delaware Trust Company and custodied by Coinbase. The application is pending approval from the US Securities and Exchange Commission (SEC), which could take months.
Fundamental Shift in the Cryptocurrency Market
The applications’ approval could signal a fundamental shift in the cryptocurrency market, as asset managers show increased confidence in solana. The cryptocurrency is now seen as a mainstay, alongside bitcoin and ethereum, by a US crypto asset manager. However, the path to approval will be lengthy, and market performance will likely be influenced by the outcome.
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