Grayscale Files for Solana Spot ETF Conversion

Grayscale Investments aims to enter the Solana-ETF market by filing for SEC approval to convert its Solana Trust into a spot ETF.

On November 3, 2024, Grayscale Investments, one of the leading U.S. asset management firms, filed an application with the SEC to transform its Grayscale Solana Trust (GSOL) into a spot ETF, aiming for a listing on NYSE Arca.

NYSE Arca, a premier electronic exchange for securities, specializes in exchange-traded products (ETPs) and ETFs, making it a key platform for innovative financial products.

Grayscale’s 19b-4 filing outlines the goal of improving access to SOL, the native token of the Solana blockchain. By converting to an ETF, the fund intends to offer investors a streamlined way to trade shares of the fund on a regulated market.

Representatives from Grayscale emphasize that the ETF conversion will refine SOL price tracking and resolve inefficiencies linked to its current unlisted setup.

Grayscale is now among several firms, including Bitwise, VanEck, 21Shares, and Canary Capital, vying for a Solana spot ETF in the U.S.

Currently one of the largest issuers of Bitcoin and Ethereum ETFs, Grayscale ranked second in Bitcoin ETF net assets ($20.59 billion) and first in Ethereum ETF assets ($5.34 billion) as of December 2024.

Launched in 2021, Grayscale’s Solana Trust became its 16th investment product. Regulatory filings reveal that the trust currently holds $134 million in assets under management.