Crypto native exchange-traded product issuer 21Shares has submitted an S-1 registration statement to the U.S. Securities and Exchange Commission (SEC) on Friday to purchase a spot Solana ETF.
If approved, the 21Shares Core Solana ETF will provide investors exposure to Solana, the fifth-largest cryptocurrency by market capitalization. The fund will track the price of SOL and trade on the Cboe BZX Exchange. Similar to 21Shares’ other spot ETF offerings, Coinbase Custody Trust Company will hold the relevant SOL assets in separate wallets.
It is worth noting that, similar to VanEck’s ETF, the 21Shares ETF will not provide staking rewards for the stocks held in SOL. This decision may reflect behind-the-scenes discussions with regulatory authorities, as the SEC’s position on cryptocurrency staking remains unclear.
However, the approval path for the two Solana ETFs appears uncertain. The SEC has previously hinted that SOL may be classified as a security, which would entail stricter regulations. Additionally, the lack of a mature Solana futures market could be another hurdle, a factor the SEC has considered when approving Bitcoin and Ethereum ETFs.
Despite these challenges, some cryptocurrency proponents believe a potential shift in U.S. leadership could pave the way for the approval of a SOL ETF. Speculation surrounding Donald Trump’s victory in the presidential election has led some to hope for a more crypto-friendly regulatory environment.
Following the news of VanEck’s application for a spot Solana ETF with the SEC, the Sol token has risen over 16% in the past week. At the time of writing, according to CoinMarketCap, SOL is trading at $147.53, up 6.25% in the last 24 hours.