- Cryptocurrency investment company 21Shares has taken a significant step by filing for a Solana (SOL) ETF, following in the footsteps of VanEck.
- The Securities and Exchange Commission (SEC) recently approved spot bitcoin ETFs for both firms after a prolonged wait, and both are now awaiting approval for Ethereum spot ETFs.
- Personnel involved in the Solana discussions have indicated that the ETF application might be submitted within days or weeks, though they have chosen to remain anonymous due to the confidentiality of the process.
21Shares leads the charge for a new Solana ETF following SEC’s recent approvals.
21Shares and VanEck Pursue Solana ETF Listing on CBOE
Following the SEC’s approval of their spot bitcoin ETFs, 21Shares and VanEck are now targeting the inclusion of a Solana ETF on the CBOE exchange. This move indicates both firms’ commitment to expanding their cryptocurrency product offerings despite the challenges they face. Approval procedures involve CBOE seeking permissions, an essential step before listing the new ETF.
Implications for Solana in the ETF Market
The specific individuals involved in these ETF discussions prefer to remain anonymous due to the sensitive nature of the matter. However, the consensus is that this submission may occur imminently. If approved, the Solana ETF could be a significant addition to the market, potentially offering an accessible investment vehicle tied to Solana’s price.
Broader ETF Market Developments
Meanwhile, other market players like 3iQ, based in Canada, have also made moves to get similar Solana-based products approved by regulatory authorities. In June, 3iQ applied to the Ontario Securities Commission to list a Solana ETF on the Toronto Stock Exchange. This indicates growing interest from various institutional investors to broaden the range of cryptocurrency ETFs available to the market.
The Uniqueness of Solana ETFs Compared to Bitcoin and Ethereum
Before the approval of spot ETFs for Bitcoin and Ethereum, BTC and ETH futures were already traded on the CME exchange. However, Solana lacks such an investment vehicle, making the introduction of a Solana spot ETF a noteworthy development. According to Andrew Jacobson, an executive at 21Shares, the absence of existing Solana futures should not be seen as a barrier but rather an opportunity for innovation.
Conclusion
In summary, the financial sector’s interest in expanding ETF offerings to include Solana reflects broader trends in the adoption and institutionalization of cryptocurrencies. The upcoming submissions and potential approvals will not only set precedents but also offer new avenues for investors looking for diversified cryptocurrency portfolios. The actions of firms like 21Shares and VanEck highlight the dynamic and fast-evolving nature of the cryptocurrency investment landscape.
