Canary Capital Joins the ETF Race
The digital asset world is evolving rapidly, bringing with it an array of new investment tools. Following the successful debut of Bitcoin and Ethereum ETFs, it appears that Solana’s turn may be approaching.
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The digital asset world is evolving rapidly, bringing with it an array of new investment tools. Following the successful debut of Bitcoin and Ethereum ETFs, it appears that Solana’s turn may be approaching.
Canary Capital, an institutional trading and crypto asset management company that also operates its own hedge fund, recently submitted an application with the SEC for a Solana spot ETF, joining other contenders such as VanEck and 21Shares.
Canary Capital Solana ETF Application. Source: sec.gov
Related: VanEck: From John to Jan
Why Solana?
Solana, currently the fifth-largest cryptocurrency by market capitalization, has emerged as a strong Ethereum competitor. With faster transactions and lower fees, Solana is a popular choice for decentralized applications (dApps) and decentralized finance (DeFi) protocols. Additionally, it has captured the interest of both retail and institutional investors, showing over 400% growth in the past year.
Related: Ethereum vs Solana: Choosing the Optimal Blockchain
ETFs provide a regulated and convenient way for clients to invest in Solana without needing to buy, store, or secure it themselves. ETFs allow investors to diversify risk and potentially benefit from Solana’s growing ecosystem.
Awaiting SEC Approval
Still, realistic caution is warranted.
Despite Bitcoin and Ethereum ETF success stories, the SEC remains cautious on crypto ETFs, citing concerns over potential market manipulation and fraud, often in the name of investor protection.
Additionally, unlike BTC and ETH, SOL has yet to receive a “non-security” classification from the SEC.
Approval of a Solana ETF would be a significant milestone for the cryptocurrency industry, improving liquidity and further legitimizing this asset class.
Related: Solana Breakpoint 2024: Key Takeaways
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