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21Shares, a crypto-native exchange-traded products issuer, has filed an S-1 registration statement with the US Securities and Exchange Commission (SEC) on Friday for a spot Solana ETF.
The 21Shares Core Solana ETF, if approved, would offer investors exposure to Solana, the fifth-largest cryptocurrency by market cap. The fund would track the price of SOL and trade on the Cboe BZX Exchange. Similar to 21Shares' other spot ETF offerings, Coinbase Custody Trust Company would hold the underlying SOL assets in segregated wallets.
Notably, the 21Shares ETF, like VanEck's, will not offer staking rewards for SOL holdings. This decision likely reflects behind-the-scenes discussions with regulators, as the SEC's stance on crypto staking remains unclear.
However, the path to approval for both Solana ETFs appears uncertain. The SEC has previously hinted that SOL might be classified as a security, a designation that would impose stricter regulations. Additionally, the lack of a well-established Solana futures market, a factor the SEC considered in approving Bitcoin and Ethereum ETFs, could be another hurdle.
Despite these challenges, some crypto proponents believe a potential shift in US leadership could pave the way for SOL ETF approval. Speculation surrounding a Donald Trump presidential win has some hoping for a more crypto-friendly regulatory environment.
The Sol token is up over 16% in the past week on the back of news that VanEck filed for a spot Solana ETF with the SEC. At the time, Bloomberg Intelligence ETF analyst James Seyffart said that such products could launch in 2025 if there is a "new admin in the White House and SEC."
At the time of writing, SOL is trading at $147.53, or 6.25% up in the past 24 hours, according to CoinMarketCap data.
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