A well-known asset management company, Grayscale investments, decided to accelerate the norm by registering a Solana ($SOL) Exchange Traded Fund (ETF) with NYSE. This follows a rise of interest in cryptocurrencies due to the most recent political happenings. Grayscale has filed this new filing so it can give investors a safer way to invest in Solana, one of the foremost cryptocurrencies today.
Right now, Grayscale has a Solana trust fund, which entails that it owns the cryptocurrency but doesn’t hold it in an offering ETF. With $134.2 million in assets, it is the biggest Solana investment fund in the world. However, Grayscale believes it could make Solana more accessible to the investor base if this trust is converted to a spot ETF. What’s more important about this is that they can invest in Solana without actually having to buy the cryptocurrency itself. The objective is for the ETF to be worth the amount of Solana the fund holds, minus costs.
The action to file a Solana ETF gives us all the hope that Grayscale is growing in their confidence of cryptocurrency being turned into a legitimate investment. Grayscale is also interested in other crypto ETFs, like the one for Litecoin. To convert its Solana Trust into a spot ETF, Grayscale filed a 19b-4 form with the NYSE. The way that Bitcoin and Ethereum are widely recognized, Grayscale believes other cryptos such as Solana are capable of going the same way.
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As it turns out, Grayscale’s filing for the Solana ETF is just one of the many trends in the crypto space. This is not the first time, other major asset managers such as Canary Capital, 21Shares, and Bitwise have also expressed interest in launching their own crypto ETFs in recent weeks. This follows what seems to be a growingly optimistic sentiment in the market, after a few regulatory changes finally began to favor the market.
While Solana has observed huge growth, the cryptocurrency’s price has been a bit shaky. In the last 24 hours, Solana prices have dropped by 11%. However, this does not stop experts from thinking that trading Solana on a major securities exchange such as the NYSE will create different opportunities for investors.
This is just the beginning for Grayscale and Solana. Also, the firm has been filing for more ETFs, such as that focused on Bitcoin mining. As cryptocurrencies become more and more popular, Grayscale is making an effort to expand its services and increase the number of options people have to invest in the digital currency world.
This is an important step in the Solana and crypto ETF journey, and other companies will certainly follow Grayscale’s lead in the coming months.
Also read: Kraken Relaunches Crypto Staking Services for U.S. Customers Under New Regulations
