Grayscale Investments has taken another step to expand its footprint in the digital asset market by filing with the U.S. Securities and Exchange Commission (SEC) to convert its Grayscale Solana Trust into a spot exchange-traded fund (ETF).
If approved, the ETF would trade on the New York Stock Exchange under the ticker symbol GSOL, giving investors direct exposure to Solana (SOL), one of the fastest-growing blockchain platforms in the crypto ecosystem.
The filing, filed as a 19b-4 request, marks Grayscale’s ongoing effort to convert its existing crypto trusts into fully regulated ETFs. The company has already achieved this for its flagship Bitcoin and Ether investment products, which are now traded as spot ETFs following SEC approval earlier this year.
According to the filing, the Grayscale Solana Trust is currently the world’s largest Solana-focused investment fund, managing approximately $134.2 million in assets as of the filing date.
The news sent SOL up almost 7% to $238, before a small pullback to $234 at press time.
Increased competition
Grayscale’s move comes amid increasing competition among asset managers looking to launch the first Solana ETF.
Other players, including 21Shares, Canary Capital, VanEck and Bitwise, have already filed similar documents, signaling a race to gain regulatory approval. The growing interest reflects Solana’s increasing prominence in the crypto space, fueled by its rapid adoption and innovative technology.
Over the past year, Solana has experienced a 275% increase in value, driven by its appeal as a scalable and cost-efficient alternative to Ethereum. Its current market capitalization is over $110 billion, making it one of the largest cryptocurrencies by market value.
This meteoric rise has increased demand for Solana-linked investment products, making ETFs a convenient entry point for both institutional and retail investors.
Regulatory uncertainty remains
Despite the enthusiasm, the SEC has yet to approve a spot ETF tied to Solana or similar altcoins. The agency’s cautious approach to crypto ETFs, especially spot products, comes amid concerns about market manipulation, liquidity and investor protection.
However, Grayscale and other issuers remain optimistic that the SEC will eventually greenlight these products, given the growing maturity of the crypto market and advances in regulatory oversight, especially under the incoming Trump administration.
Grayscale has positioned its filing as part of a broader effort to expand access to digital assets through traditional financial products.
In a statement accompanying the filing, the company highlighted the potential of ETFs to bridge the gap between institutional-quality investment opportunities and individual investors seeking exposure to emerging technologies such as blockchain.
