Grayscale and Six Others File for Form S-1 on Spot Solana ETF

A slew of investment companies have submitted amended S-1 registration statements with the United States Securities and Exchange Commission (SEC) for spot Solana ETFs. These investment companies are Grayscale, VanEck, Bitwise, Canary, Franklin Templeton, Fidelity, and CoinShares.

The move signals a potential breakthrough in the crypto industry, with experts predicting a high likelihood of approval.

Seven Solana ETF Applications

The amended filings show active engagement between the SEC and ETF issuers to enable in-kind creation and redemption for the SOL-backed ETF.

Notably, these amendments come shortly after the securities regulator approved in-kind creation and redemption for crypto ETPs. This allows authorized participants to exchange crypto assets directly with ETP issuers. This move aims to reduce transaction costs, minimize price slippage, and increase market efficiency.

Grayscale has set a 2.5% sponsor fee for its Solana ETF (GSOL), which will trade on the New York Stock Exchange Arca (NYSE). The fund will passively hold SOL and may implement staking in the future if allowed. It will use a cash model for creating and redeeming shares, with Coinbase Custody as the sole custodian.

Unlike Grayscale, most of the other firms did not indicate the fees that applied to their SOL-focused ETFs. Even ETF experts like Eric Balchunas anticipate the fees these companies will implement. Hinting at the possible fee they will adopt, Nate Geraci, another ETF expert, stated that the fees will be somewhat near those of Bitcoin and Ethereum ETFs.

Although VanEck did not mention its fee, it noted that its VSOL ETF will be listed on Cboe BZX. The fund includes an active staking framework and plans to stake a portion of SOL holdings via third-party providers. Gemini and Coinbase Custody will serve as co-custodians.

Meanwhile, Canary Capital, Franklin Templeton, and Fidelity did not specify the exchange they would use. Notably, CoinShares, being a well-established player in the cryptocurrency investment space, plans to trade funds on the Nasdaq.

Weeks ago, experts confirmed that there is a 90% chance of SEC approval for spot Solana ETFs. As the outlook for products with staking features remains uncertain, the potential approval of spot Solana ETFs could lead to increased institutional adoption. Consequently, it opens broader investment options for U.S. investors.

Meanwhile, SOL traded at $169, representing a sharp 6% decline within the past 24 hours.

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