Grayscale has filed a new S-1 form to launch the next Solana ETF.
The new fund will be based on the Grayscale Solana Trust, a previously traded ETP.
Grayscale moved a step closer to launching a new Solana (SOL) exchange traded fund after filing an S-1 form with the US Securities and Exchange Commission (SEC). The S-1 form for registering new securities under the US 1933 Securities Act is part of the EFT launch process. However, Grayscale has not set up a deadline for the new ETF, still awaiting a statement from the SEC.
Currently, Grayscale’s Solana Trust trades under the ticker GSOL as an OTC asset. GSOL has over $61M in assets under management. The issued GSOL shares trade at $9.75, based on the stock’s net asset values of 0.073 SOL per share. Since November 2024, GSOL has seen consistently higher trading volumes after mainstream investors reacted to growing crypto enthusiasm.
Right now, GSOL sees a similar price pressure to the underlying crypto asset.
GSOL saw a sudden spike in trading volumes since November 2024, though the price was depressed by sellers. | Source: OTCQB
Grayscale has multiple pending SEC filings
The new form filing does not preclude the SEC statement on a previously filed 19b-4 form. The NYSE Arca exchange filed on behalf of Grayscale in December 2024, but the SEC has not responded with permission to issue the new shares.
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“As of the date of this filing, the 19b-4 Application has not been approved by the SEC. The Trust makes no representation as to when or if such approval will be obtained. The Trust will not seek effectiveness of this registration statement and no offering of Shares hereunder will take place unless and until such approval is obtained,” stated Grayscale in its new filing.
A Solana ETF is seen as a potential spark for mainstream demand for a new ecosystem. However, the effect of an ETF can be mixed, as in the case of the relatively weak performance of Ethereum funds.
For now, there are only two approved Solana ETFs by Volatility Shares, trading as SOLT and SOLV. The first US-targeted Solana ETF launched in March and is still building up a trader base.
The Grayscale filing arrives just days after the company offered a Bitcoin Covered Call ETF. A week ago, Grayscale also filed for a new ETF based on Avalanche (AVAX), which is now under a 90-day review period by the SEC. The ongoing filings are seen as signs of confidence in the crypto market and the potential for mainstream inflows.
Markets await multiple Solana ETF approvals
Most of the major ETF issuers have filed for Solana funds, including VanEck, Bitwise, Canary Capital, 21 Shares and others. Currently, all funds show their application as pending or still under the obligatory discussion and waiting period. The Grayscale filing followed the recent form by Fidelity, again for a spot ETF. The new filings will not include SOL staking or any form of passive income tied to holding the token.
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Meme coins still dominated 92% of Solana DEX volume in the past month
Grayscale’s application is the only attempt to convert an existing product. The launch could come with already established trader base, along with already established reserves by Grayscale. The biggest issuer of crypto-related products is also a self-custodied holder of multiple assets.
Following the news of the filing, SOL remained without significant change at $114.63, reflecting the overall market weakness. The current optimistic prediction is for at least one ETF approval toward the end of 2025.
SOL is seen as an asset on par with Ethereum, offering key infrastructure and on-chain economics. Currently, Solana’s DEXs remain busy with meme token trading as their main source of activity. Solana’s ETF will expose crypto insiders to new inflows of funding, bringing a significant source of internal demand.
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