Grayscale Files Form S-1 for Solana ETF With U.S. SEC

Investment manager Grayscale has submitted Form S-1 with the United States Securities and Exchange Commission (SEC) to list a spot Solana exchange-traded fund (ETF). The latest application brings the firm closer to potentially securing approval. This update comes nearly two months after the securities regulator acknowledged the SOL-focused ETF product.

Grayscale Nears Solana ETF Approval

Grayscale’s quest for a spot Solana ETF began in December 2024 when it applied for the financial product with the SEC. NYSE Arca, a U.S. exchange for listing ETFs, applied for the Grayscale Solana ETF on the company’s behalf. The firm joined a slew of investment management companies like Canary Capital and 21Shares that have already filed for the financial product.

Another investment giant, Fidelity, joined the party as it applied for a spot Solana ETF with the SEC. The application was aided by its partner, the CBOE stock exchange.

Currently, Grayscale offers a Solana Trust (GSOL), a financial instrument that allows users to gain exposure to the SOL coin. However, the SEC’s application for a Solana ETF will enable holders to gain indirect exposure to the cryptocurrency within the financial watchdog’s regulatory guardrails. Grayscale’s goal is to convert its Solana Trust into an ETF product.

Notably, Grayscale’s Solana ETF will not facilitate staking. This is an inherent feature of the SOL coin, which allows participants to earn additional digital assets for validating transactions and bolstering the network’s security. Grayscale will charge a management fee if the financial regulator gives a green light. However, the rate has yet to be disclosed.

Grayscale and other Solana ETF applicants have continuously engaged with the SEC for several months to achieve an endorsement. The hope for approval is high, especially as a crypto-friendly chairman now heads the financial agency. After acknowledging the Solana ETF product, the SEC has until October 11th to decide whether to approve the investment vehicle.

How is SOL Fairing?

Like the broader crypto market, SOL has been experiencing a price decline over the past month. According to on-chain data from CoinMarketCap, the digital asset’s current trading price has dropped from $152 a month ago to $118.

On the bright side, its current price has increased by 5.2% in the past 24 hours. With a market capitalization of $61.45 billion, it ranks as the seventh-largest cryptocurrency.