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Grayscale joins four other companies that also want to issue their Solana ETF.
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After hearing the news, Solana rose 7% and is trading at $237.
Grayscale Investments and NYSE Arca filed a 19b-4 application with the U.S. Securities and Exchange Commission (SEC) to issue a Solana exchange-traded fund (ETF).
The filing aims to convert the existing Grayscale Solana Trust (GSOL) into an ETF, which would allow investors to gain direct exposure to the price of solana (SOL).
If the application receives the green light, this ETF would be listed on NYSE Arca, an electronic stock and options exchange that merged with the New York Stock Exchange in 2006 and is headquartered in Chicago. This financial product would offer investors the possibility of trade stocks that replicate the performance of SOL, Solana’s tokena network known for its scalability and transaction speed.
Grayscale is not the only company interested in this type of financial products. With this action, it becomes the fifth asset manager which has submitted an application to launch a Solana ETFfollowing Bitwise, VanEck, 21Shares and Canary Capital, which already announced their intentions earlier this year, as reported by NoticiasVE.
Converting trusts to ETFs is not uncharted territory for Grayscale. In early 2024, the company successfully converted its Ethereum and bitcoin trusts into ETFs. The Solana Trust, originally launched in 2021, represents Grayscale’s 16th investment product, and currently manages approximately $134 million in assetsas detailed in the presentation made.
The news of Grayscale’s application had an immediate impact on the price of SOL, which experienced a 5% increase and is trading at $237 at the close of this report.
This movement reflects the growing interest on the part of financial institutions in diversifying their investment offerings towards assets like Solana. The approval of an ETF of this cryptoasset could not only further legitimize the cryptocurrency market, but also provide a more accessible avenue for both institutional and retail investors. participate in this sector of the digital economy.
This article was created using artificial intelligence and edited by a human Editor.