New digital asset manager Spot Solana has signed up to launch an exchange-traded fund (ETF), joining a growing pool of prospects that includes established VanEck and 21Shares.
Canary Capital—which filed with the Securities and Exchange Commission (SEC) this month for XRP and Litecoin products—filed its proposed Canary Solana ETF on Wednesday.
An ETF is a popular investment vehicle that trades on the stock exchange. If the SEC approves the Canary Solana ETF, investors will be able to buy stocks that track the price of SOL and gain exposure to the coin without having to buy and store cryptocurrency.
SOL is the fifth largest digital asset. Its native blockchain is used for decentralized applications (dapps), decentralized finance (DeFi), meme coins, and more. The network behind ETH is seen as a key competitor to Ethereum, offering cheaper and faster transactions.
The coin currently has a market cap of $82 billion and has seen a 400% jump over the past year at a price of $175.
Canary Capital is a Nashville, Tennessee-based firm that launched in September. It aims to provide crypto trading and management solutions for institutions.
In January, the SEC approved the Bitcoin ETF and they began trading that same month, while the Ethereum ETF was approved in May and began trading in July. But the regulator has been reluctant to do such activities following 10 years of attempts to obtain a license for Bitcoin funds, and the agency has repeatedly accused crypto companies of selling unregistered securities.
The SEC specifically alleged that it thought SOL was an unregistered security. Analysts believe Solana's ETF will eventually be approved in the United States, following the recent adoption of Bitcoin and Ethereum funds, but the pace of such a move could depend on the outcome of next week's US election — and how long Gary Gensler remains chairman. SEC
VanEyck and 21Shares filed their respective applications to launch the Solana ETF position in June. Both organizations offer Bitcoin and Ethereum ETFs in the United States.
Edited by Andrew Hayward.
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