Grayscale applies for Solana ETF

The prospects for a Solana ETF currently look more favorable than ever. Reason enough for Grayscale To file an application with the SEC.

Grayscale has joined the race for a Solana ETF. This is according to an application recently filed by the New York Stock Exchange (NYSE) with the U.S. Securities and Exchange Commission (SEC).
If the authority approves, Grayscale's Solana Trust (GSOL) would be transformed into a Spot ETF. A similar transformation already took place for Grayscale's Bitcoin and Ethereum products.

According to Grayscale, at the time of application, the trust is "The world's largest Solana investment fund by assets under management" (Assets Under Management, AuM), totaling approximately $134.2 million.

Right now, it is a so-called "19b-4 Filing," a kind of letter of intent. To make the application complete, Grayscale must file another S-1 Filing. Only then can the SEC make a decision. With this initiative, Grayscale joins other asset managers, such as VanEck, 21 Shares and Bitwise, who have filed similar applications with the SEC.

Historically, the SEC has been reluctant to approve crypto Spot ETFs. Although Bitcoin and Ethereum Spot ETFs were eventually green-lighted in the past, this was only after prolonged resistance.

Since Donald Trump's election victory, however, the chances of further approvals have improved. Talks between the SEC and applicants appear to have intensified.

In addition, the departure of SEC Chairman Gary Gensler plays into the hands of Solana Spot ETF applicants. Gensler, known as a crypto skeptic, is reportedly being replaced by someone more positive toward the industry.