Asset manager Canary Capital has joined the Solana spot exchange-traded fund bandwagon, becoming the latest to file with the US Securities and Exchange Commission (SEC) for the investment vehicle.
The newly launched asset manager submitted the filing on Wednesday, declaring its intention to offer clients indirect access to Solana. The filing stated that the spot Solana ETF would hold SOL and track its price using the Chicago Mercantile Exchange’s CF Index as a benchmark.
Notably, Canary did not indicate on which exchange the ETF will trade or the ticker representing the fund in the filing. However, it could update its application as the approval process gains momentum.
Canary Files for Solana ETF
Meanwhile, Canary has become the third asset manager to file for a Solana spot ETF with the SEC, indicating growing institutional traction. Notable ETF issuers like VanEck and Ark Investment had already filed for approval in September.
Although the other filings have not made significant progress, Canary’s entrance into the race establishes institutional traction toward a Solana spot ETF. For context, the US SEC paused the approval process following uncertainties about Solana’s asset classification, prompting CBOE to withdraw VanEck’s filing.
Meanwhile, the latest application is Canary’s third ETF filing since its market debut in September. The asset manager, founded by former Valkyrie executive Steven McClurg, had filed for XRP and Litecoin ETFs in early October.
Solana ETF Gaining Momentum
Institutional investors and asset managers have started noticing the fifth-largest crypto asset by market cap. This was expected following the launch of the Bitcoin and Ethereum ETFs in January and July, respectively.
Notably, Solana’s high on-chain presence and transactional acumen have been intriguing points for asset managers. Canary noted in an October 29 post that the blockchain network has eclipsed Ethereum and Binance Chain in active addresses and layer 2 chain accounting.
However, regulatory uncertainties remain a strong impediment to approval. The US SEC views Solana as a security, which has influenced its disposition toward approving the funds.
Notably, analysts have predicted that a change in the SEC chair and a shift in the regulatory climate will put the approval process back on track. Pro-crypto nominee Donald Trump has already promised to fire Gary Gensler while the Democrats are still considering their options.
Meanwhile, SOL trades at $175, down almost 2% in the past 24 hours.