CoinShares has filed for an ETF based on Solana amidst heightened activity in the crypto investment market. This step may significantly impact many cryptocurrencies.
CoinShares Application and Its Objectives
CoinShares aims to create an ETF that will hold "SOL" tokens with the investment goal for shares to reflect the performance of SOL's value. The Form S-1 has been submitted to the SEC, naming other participants, including Coinbase Custody and BitGo Trust, as custodians. CoinShares plans to stake part of its SOL tokens through trusted staking providers but will not engage in such activities itself.
Analyst Predictions for Solana ETFs
Eric Balchunas, a Senior ETF Analyst at Bloomberg, noted that Solana could receive approval for a spot ETF within two to four months. He also indicated a high likelihood of Solana ETFs being approved by the end of 2025, with Polymarket showing a 91% probability. Ongoing discussions involve the SEC's requests for companies to amend their applications regarding staking.
Recent Actions by Other Companies
Invesco and Galaxy Digital are also preparing to launch a Solana ETF by registering a trust in Delaware. Other companies like VanEck and 21Shares have asked the SEC to reinstate the first-to-file approval order for their updated applications. This request comes after the SEC postponed its decision on Grayscale's Solana ETF, stating it had not reached any conclusions regarding the current filing.
The preparation for the launch of Solana-based ETFs is an important step in the cryptocurrency market, potentially attracting investor attention and strengthening Solana's position as a significant cryptocurrency. The outcomes of the current applications are expected to be determined in the coming months.
