Grayscale Files for Spot Solana ETF with the SEC

Grayscale Investments, a prominent digital asset manager, has filed with the United States Securities and Exchange Commission (SEC) to launch a spot Solana exchange-traded fund (ETF). If approved, the Grayscale Solana Trust, under the ticker GSOL, will trade on the New York Stock Exchange, according to a filing made with the SEC on December 3.

Conversion of Solana Trust to Spot ETF

This filing represents Grayscale's effort to convert its existing Grayscale Solana Trust into a spot ETF, following a similar strategy it used to convert its Bitcoin (BTC) and Ethereum (ETH) trusts into ETFs. The Solana ETF would provide an easy, regulated way for investors to gain exposure to Solana (SOL), which has seen significant growth in recent months.

As of the filing date, Grayscale’s Solana Trust holds approximately $134.2 million in assets under management (AUM), making it the largest Solana investment fund globally. The trust’s holdings represent roughly 0.1% of all Solana in circulation.

Custodians and Administrators

If approved, Coinbase Custody will serve as the custodian for Grayscale’s spot Solana ETF. BNY Mellon Asset Servicing, a division of The Bank of New York Mellon, is expected to handle the administrative and transfer agent duties for the Trust.

Growing Competition for Solana ETF

Grayscale is not alone in its bid to launch a spot Solana ETF. The company joins other firms like 21Shares, Canary Capital, VanEck, and Bitwise, which have also filed with the SEC for approval of a spot SOL ETF. In addition, Franklin Templeton is reportedly considering launching its own Solana ETF.

The competition is intensifying as Solana’s price has surged by 277% over the past year, reaching a market cap of over $112 billion. As of the filing date, Solana (SOL) was trading at $238, representing a nearly 4% increase since Grayscale submitted its filing.

Next Steps for Grayscale’s Filing

For the ETF to move forward, Grayscale will need to submit an S-1 registration statement, in addition to the 19b-4 filing, which informs the SEC of a proposed rule change by a self-regulatory organization. The approval of the S-1 form would enable Grayscale to list GSOL on a public stock exchange, offering a new avenue for investors to access Solana.

As the race to launch a spot Solana ETF heats up, all eyes will be on the SEC to determine whether the regulator will approve Grayscale’s application, along with the competing filings from other firms.