CoinShares files for a Solana ETF, tracking SOL’s price on the Nasdaq, reflecting increased altcoin ETF interest.
SEC delays decisions on Solana ETF proposals from multiple firms, signaling the need for more analysis.
Solana’s price and developer adoption continue to rise, making it a prime candidate for mainstream ETF approval.
A European digital asset management firm called CoinShares has filed an application to have an exchange-traded fund (ETF) that tracks Solana (SOL) with the U.S. Securities and Exchange Commission (SEC). The new ETF will be moving along with the price of Solana, which is the sixth-largest cryptocurrency by market capitalization, and which will be listed at the Nasdaq Stock Market. The action forms one of an increasing number of applications by asset managers to trade ETFs based on altcoins as investors show an interest in investing in the coin.
Growing Interest in Solana ETFs
CoinShares is the latest firm to join a list of major asset managers seeking approval for Solana-based funds. Firms like 21Shares, Bitwise, Fidelity, Franklin Templeton, Grayscale, VanEck, and Canary Capital have also filed similar applications. These funds aim to capture the growing interest in Solana and provide investors with a straightforward way to gain exposure to the digital asset.
SOL has been picking up due to its rapidness and effectiveness in running decentralized applications which are mostly used in the sphere of crypto exchange and games. In the face of its fast expansion, Solana has not escaped the regulatory impasse as reflected by recent SEC delays in resolving proposals of several Solana ETFs.
SEC Delays Solana ETF Decisions
SEC has prolonged the decision date of the Solana ETF filed by a number of companies, such as 21Shares, Bitwise, VanEck, and Canary Capital. This is the delay with regard to legal and policy issues that the agency requires to take more time in addressing. Such a step by the SEC does not suggest the possibility of higher chances of the approval or the rejection of the act; it just implies that there should be more examination before proceeding with the act.
It is not the first instance when the SEC refused to make a decision in relation to the crypto-related ETFs. The SEC allowed Bitcoin ETFs last year and succeeded with Ethereum ETFs as well, bringing acceptable results. The assets under management (AUM) of the bitcoin-related fund, such as BlackRock-owned iShares Bitcoin Trust (IBIT) and some other, went above 100 billion. Ether ETFs have not lagged behind this time with $3.9 billion worth of net inflows.
Solana’s Price and Market Performance
As of the most recent data, Solana’s price stood at $152.82, showing a 2.85% dip over the past 24 hours. Solana’s all-time high reached $294.33 in January, as per data from CoinMarketCap. The Solana network continues to gain favor with developers who are building decentralized applications due to its ability to handle high transaction volumes at a low cost.
Source: CoinMarketCap
The SEC’s decision to approve or reject Solana ETF proposals will be closely watched. With multiple firms now pushing forward with filings, Solana could soon become the latest cryptocurrency to have its own ETF product, adding to the list of digital assets gaining mainstream investment access.
Altcoin ETFs Solana-based will be in the market, posing an important role in the digital asset market since the opportunities of approving proceedings of the ETF are increasingly becoming realistic with the change of guidance at the SEC. Investors are becoming keen on how to diversify their portfolios to navigate cryptocurrencies, mainly through exposure to the best cryptocurrencies and ETFs, which offer an accessible and regulated ETF to achieve that goal. Since the number of applications on altcoin-based funds is on the increase in the pipeline, we can conclude that the cryptocurrency ETF market is expanding at a high rate.
