The New York Stock Exchange filed an application with the SEC to create an ETF based on Grayscale’s Solana Trust. This filing joins several other Solana and XRP ETF applications in recent days.

With Bitcoin’s dominance declining through the past month, the crypto community is already anticipating an altcoin season, and the SEC’s approval of these ETFs could significantly intensify bullish momentum.

Grayscale’s Solana ETF

With this filing, Grayscale wants to convert its SOL mutual fund into a Solana ETF, similar to what the firm did with its original Bitcoin ETF. Grayscale now joins at least four other firms that filed for a Solana ETF with the SEC in November. These include VanEck, 21Shares, Bitwise, and Canary Capital.

“The Sponsor (Grayscale) thus believes that allowing Shares of the Trust to list and trade on the Exchange as an ETP (i.e., converting the Trust to a spot SOL ETP) would provide other investors with a safe and secure way to invest in SOL on a regulated national securities exchange,” the filing read.

In late November, the SEC quietly conducted negotiations on the SOL ETF, and the talks seemed progressive. If approved, Solana would be the third cryptocurrency to have institutional investment exposure in the US, following Bitcoin and Ethereum. Solana’s price has already reacted positively to the news, with SOL surging nearly 5% on the day.

If the SEC approved this ETF product, it would open a new milestone of regulatory approval.
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Author: Landon Manning