Turning point? Grayscale applies to convert Solana Trust into Spot ETF

Source: cryptoslate

Compilation: Blockchain Knight

Grayscale Investments has submitted an application to the US Securities and Exchange Commission (SEC) to convert its Grayscale Solana Trust into an ETF, taking another step towards expanding its influence in the digital asset market.

If approved, the ETF will trade on the New York Stock Exchange under the ticker symbol GSOL, providing investors with the opportunity to directly invest in Solana (SOL), one of the fastest growing blockchain platforms in the Crypto ecosystem.

This document submitted in the form of a 19b-4 application marks that Grayscale is continuing to push for its existing Crypto Asset Trust Fund to be transformed into a fully regulated ETF.

The company’s flagship products BTC and ETH investment products have achieved this goal and are now traded as Spot ETFs, after receiving SEC approval earlier this year.

According to the submitted documents, the Grayscale Solana Trust Fund is currently the world’s largest Solana investment fund, managing approximately $134.2 million in assets as of the submission date.

As of now, the news has led to a big pump of SOL by nearly 7%, reaching $238, followed by a slight pullback to $234.

Grayscale’s move comes as asset management companies rush to launch the first Spot Solana ETF.

Other participants, including 21Shares, Canary Capital, VanEck, and Bitwise, have submitted similar application documents, signaling a competition for regulatory approval is underway.

The growing interest in Solana reflects its increasingly significant position in the crypto asset field. Its rapid adoption and innovative technology provide the driving force for its development.

Over the past year, Solana’s value has soared by 275%, largely due to its appeal as a scalable and cost-effective alternative to Ethereum.

Currently, Solana’s market capitalization exceeds $110 billion, making it one of the largest crypto assets in terms of market capitalization.

The rapid rise in momentum has increased the demand for investment products related to Solana, making ETFs a convenient entry point for institutions and retail investors.

Despite the market enthusiasm, the US Securities and Exchange Commission (SEC) has not yet approved any Spot ETF linked to Solana or similar tokens.

The institution’s cautious attitude towards Crypto ETFs (especially Spot products) stems from concerns about market manipulation, liquidity, and investor protection.

However, given the increasing maturity of the crypto asset market and regulatory progress, especially under the leadership of the incoming Trump administration, Grayscale and other issuers are optimistic that the Securities and Exchange Commission of the United States will ultimately give the green light to these products.

Grayscale positions its application as part of a broader effort to expand the use of digital assets through TradFi products.

In an accompanying statement, the company emphasized the potential of ETFs to bridge the gap between ‘institutional investment opportunities’ and ‘individual investors seeking emerging technologies such as blockchain’.