Grayscale Plans to Launch a Solana (SOL) Spot ETF, Targeting the Altcoin Market

Grayscale Investments has submitted a filing with the New York Stock Exchange (NYSE) to launch a Solana ($SOL) spot exchange-traded fund (ETF).

Grayscale, a leading digital currency asset manager, has submitted an application to the New York Stock Exchange (NYSE) to launch a spot Solana ($SOL) exchange-traded fund (ETF). This move follows the NYSE's recent approval by the U.S. Securities and Exchange Commission (SEC) to offer options trading on Bitcoin ETFs.

Crypto ETFs Surged in 2024, Grayscale Has Big Plans This Year

Cryptocurrency-based ETFs have seen a surge in 2024, with the SEC approving 11 spot Bitcoin (BTC) ETFs at the beginning of the year. This approval sparked a market rally that culminated in Bitcoin reaching a new all-time high of nearly $40,000 in March.

A few months later, Ethereum (ETH) spot ETFs were introduced, and now the focus has shifted to altcoin-based ETFs, potentially making Solana the next major candidate.

Grayscale's Bitcoin Trust, which launched in January, has become one of the most successful Bitcoin ETFs in the market. Building on this success, the company is now focusing on Solana, which has seen rapid growth in its ecosystem and native token. The Grayscale Solana Trust currently holds the largest Solana investment fund, with $134.2 million in assets, which equates to 0.1% of all SOL in circulation.

Trending Now: Bitcoin Price Analysis: BTC/USD Surges Past $30,000 as Bulls Target $32,000

Grayscale intends to convert this trust into a spot Solana ETF, enabling shares to be traded on a national securities exchange that is regulated. According to the company, this will provide investors with a secure and legal method of investing in Solana.

2024: The Year of Crypto ETFs

If approved, the Solana ETF would become the third crypto-based ETF to launch in the United States in 2024, following Bitcoin in January and Ethereum a few months later. While Bitcoin ETFs have seen great success, Ethereum ETFs have not yet performed as well as anticipated.

Looking ahead, other altcoins, such as XRP, may also join the ETF race, potentially making 2025 a more significant year for crypto investment opportunities than 2024.

Faster Approvals on the Horizon

Recent changes in SEC leadership have led analysts to anticipate faster approvals for newer ETF filings, such as Grayscale's Solana ETF, compared to earlier applications. If successful, this could pave the way for a wider range of altcoin-based ETFs, further expanding the cryptocurrency market's reach.