A US-Based Digital Asset Manager Files for Spot Solana ETF
Canary Capital has applied to launch a spot Solana exchange-traded fund (ETF) with the Securities and Exchange Commission (SEC). This application follows the company’s recent filings for XRP and Litecoin investment products.
If approved, the Canary Solana ETF would enable investors to buy shares tracking the SOL token’s price, providing exposure to the cryptocurrency without the need for direct purchase and storage. As the fifth-largest digital asset, Solana’s native blockchain hosts decentralized applications, DeFi, meme coins, and more, with a $82 billion market capitalization and 400% value increase over the past year, currently trading at $175.
Solana is considered a rival to Ethereum, offering cheaper and faster transactions. Canary Capital highlighted Solana’s robust DeFi ecosystem, strong and sustainable on-chain analytics, and low-fee environment, which could further increase its advantage over competitors.
The proposed ETF is a step towards Canary Capital’s goal of providing institutions with crypto trading and management solutions. While the SEC has previously stated that SOL is an unregistered security, analysts believe Solana ETFs will eventually be approved in the US, following recent nods to Bitcoin and Ethereum funds. The timing may depend on the outcome of the US election and the tenure of SEC chairman Gary Gensler.
Other companies, including VanEck and 21Shares, have also filed applications for spot Solana ETFs, having already launched Bitcoin and Ethereum ETFs in the US.
Key points about the proposed Solana ETF include:
* Trading and management solutions for institutions
* Tracks the SOL token’s price without direct purchase and storage
* Part of Solana’s robust DeFi ecosystem and low-fee environment
* Considered a rival to Ethereum
* Potential approval dependent on US election outcome and SEC chairman tenure