- Grayscale has filed an S-1 with the SEC to launch a spot Solana ETF on NYSE Arca, tracking SOL’s price without staking.
- If approved, the ETF could boost institutional adoption and Solana’s market exposure.
Grayscale Investments has officially filed Form S-1 with the U.S. Securities and Exchange Commission (SEC) to launch a spot Solana ETF. If approved, the ETF will be listed on NYSE Arca, offering investors a direct way to gain exposure to Solana (SOL) without needing to hold the asset themselves.
How the Grayscale Solana ETF Will Work
The Grayscale Solana Trust (SOL), once converted into an exchange-traded fund, will hold SOL tokens and track their price using the CoinDesk Solana Price Index (SLX). Key players in the fund’s operations include:
- Coinbase as the prime broker and custodian
- Bank of New York Mellon as the transfer agent and administrator
Unlike other crypto ETFs, staking is not included, meaning the fund will not generate additional yield through Solana’s staking mechanism.
Cash-Based Structure and Fees
To start, the ETF will use a cash-based model for share creation and redemption. This means authorized participants must use liquidity providers to acquire or sell Solana, rather than exchanging it directly. The option for in-kind redemptions could be introduced later, pending SEC approval.
Grayscale will charge a management fee, though the exact rate has yet to be disclosed. The fee will be deducted in SOL tokens, reducing the overall asset balance over time.
Solana’s Market Position and Impact on SOL Price
As of April 3, Solana (SOL) boasted a $59 billion market cap, ranking as the seventh-largest cryptocurrency. With 514 million SOL in circulation and $4.7 billion in daily trading volume, investor interest in a regulated spot ETF could significantly impact SOL’s liquidity and price trajectory.
If approved, Grayscale’s Solana ETF would become the first SOL-based exchange-traded product in the U.S., potentially opening the door for more institutional adoption. However, the SEC’s decision remains uncertain, and the market will be closely watching for further updates.
