Canary Capital Applies to Launch Spot Solana ETF in the US
A new digital asset manager, Canary Capital, has filed an application with the Securities and Exchange Commission (SEC) to launch a spot Solana exchange-traded fund (ETF) in the US. This move comes after the company filed for XRP and Litecoin investment products earlier this month.
The proposed Canary Solana ETF would allow investors to buy shares that track the price of SOL, the fifth-largest digital asset, without having to buy and store the cryptocurrency. SOL is the native token of the Solana blockchain, which is used for decentralized applications (dapps), decentralized finance (DeFi), and other uses.
Solana has seen a significant jump in value over the past year, with a 400% increase, and currently has a market capitalization of $82 billion. The token is considered a major rival to Ethereum, offering cheaper and faster transactions.
If approved, the Canary Solana ETF would join the ranks of VanEck and 21Shares, which have also filed applications for spot Solana ETFs. However, the SEC has been cautious in approving crypto-related investment products, and it remains to be seen how quickly they will move on Solana ETFs.
Solana’s Robust DeFi Ecosystem and Competitive Advantage
Canary believes that Solana’s robust DeFi ecosystem, strong on-chain analytics, and low-fee environment make it an attractive investment opportunity. The company also notes that the potential development of native on-chain stablecoins could further increase Solana’s advantage over its competitors.
About Canary Capital
Canary Capital is a Nashville, Tennessee-based firm that provides institutions with crypto trading and management solutions. The company aims to become a major player in the crypto space, and its application for a spot Solana ETF is a significant step towards achieving this goal.
SEC Approval Process
The SEC has previously approved Bitcoin ETFs in January and Ethereum ETFs in May. However, the regulator has been slow to approve crypto-related investment products, and it remains to be seen how quickly they will move on Solana ETFs. The outcome of the US election and the SEC chairman’s term could also impact the approval process.
