Grayscale has taken the next step in his efforts to launch a Spot Solana Exchange-Traded Fund (ETF).
On April 4, the Digital Asset Manager submitted a form S-1 to the US Securities and Exchange Commission (SEC), with the aim of converting its existing Grayscale Solana Trust (GSOL) into a listed ETF.
Crypto -traders on the decentralized PLYMARKET prediction platform place the chance of sec -approval for a Solana ETF at 83% before the end of the year.
However, the expectations for an earlier decision are lower, with only a 23% chance of approval before July 31.
Solana ETF
The recent entry from Grayscale comes almost four months after the first 19B-4 application from the company, which officially recognized the SEC on 6 February.
If approved, the fund would be renamed the Grayscale Solana Trust ETF and mentioned on the NYSE Arca fair.
Grayscale also revealed that the product would start with an only contact and redemption system. It added:
“The trust is currently unable to create and alternate shares through transactions in kind with authorized participants, and there must still be definitive regulatory guidelines about whether and how registered broker’s dealers in Sol can keep and act in compliance with the federal securities laws.”
Coinbase will act as the preservator of the ETF, while BNY Mellon will serve as manager and transfer agent for the fund.
No expansion
Grayscale confirmed that the ETF will not participate in the setting up or earn yield with the proof-of-stake network from Solana.
According to the submission:
“None of the trust, the sponsor, the custodian, nor any other person who is related to the trust, will, directly or indirectly, use (as defined in it), which means that no action will be taken on the basis of the fact that part of the Sol of the Trust is subject to Solana Proof-of-Stake-Validation or other income.”
The conservative approach reflects current regulatory caution. Under former SEC chairman Gary Gensler, the agency took a hard attitude when turning off, including lawsuits against various crypto platforms and pushback on placing functions in proposed Ethereum ETFs.
However, with a new administration, sentiment is shifting. Industrial players renew the efforts to integrate the plotting in ETF structures for proof-of-stake assets such as Ethereum and Solana. Experts claim that this could unlock extra yield for investors and at the same time meet the federal regulations.
