In brief
- European asset manager CoinShares has filed for a SOL exchange-traded fund.
- A number of top asset managers have proposed Solana-based funds.
- Altcoin ETFs may get approval this year under the SEC’s new leadership.
European digital asset manager CoinShares became the latest firm to file for a Solana exchange-traded fund, according to a U.S. Securities and Exchange Commission filing on Friday.
The CoinShares Solana ETF would track the price of SOL, the native coin of the Solana network, and trade on the Nasdaq Stock Market, according to the S-1 prospectus.
The application comes less than a week after seven issuers submitted revised SOL ETF applications, clarifying language that would enable them to stake their held SOL. Analysts view such amendments positively for the probability of an approval, although the revised prospectuses do not guarantee a regulatory greenlight.
Earlier this year, Bloomberg Senior ETF Analyst Balchunas penciled in a 70% chance that Solana ETFs receive approval this year, although he could not pinpoint the timing.
Funds from 21Shares, Bitwise, Fidelity, Franklin Templeton, Grayscale, VanEck, and Canary Capital are also aiming to offer investors exposure to Solana and are part of a massive wave of altcoin-based funds proposed in recent months to capture soaring investor interest in crypto-focused products.
U.S. regulators and lawmakers have ratcheted back restrictions on the digital assets industry, creating a more inviting environment for investors.
SOL is the sixth biggest cryptocurrency by market cap. Developers favors Solana blockchain for its speed and efficiency in creating decentralized applications such as crypto exchanges and games.
The price of SOL recently stood at $156.87 after rising by nearly 4% in 24 hours. The coin hit an all-time high of $293.31 back in January, crypto data provider CoinGecko shows.
CoinShares did not immediately respond to Decrypt‘s request for comment.
The SEC last year approved Bitcoin ETFs and later their Ethereum counterparts. Both products have been popular, with Bitcoin funds now managing well over $100 billion in assets.
Last week, BlackRock’s iShares Bitcoin Trust (IBIT) needed just 341 days to reach $70 billion in AUM, faster than any fund in history, according to Bloomberg data.
Ethereum-tracking funds have generated a respectable $3.9 billion in net inflows, according to U.K. asset manager Farside Investors.
Edited by James Rubin
Daily Debrief Newsletter
Start every day with the top news stories right now, plus original features, a podcast, videos and more.