Grayscale Investments has submitted an application for a Solana ETF with the New York Stock Exchange (NYSE), indicating an increasing trend of pro-crypto regulations under President Donald Trump.
Grayscale’s Proposed Solana ETF
In accordance with the NYSE’s official declaration of the 19b-4 Form, the proposed Trust stands as the most significant Solana investment fund worldwide, managing about $134.2 million in assets. This amount signifies roughly 0.1% of all Solana (SOL) currently in circulation.
At present, the Trust is not available as an exchange-traded product (ETP), which has reportedly impeded its Shares from accurately reflecting the underlying value of SOL.
Grayscale asserts that transforming the Trust into a spot Solana ETF will provide a safer and more reliable investment option for investors, allowing them to engage on a regulated national securities exchange.
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The Trust is established as a Delaware statutory trust and operates under a trust agreement between Grayscale as the Sponsor and the Delaware Trust Company acting as the Trustee.
Coinbase Custody Trust Company serves as the Custodian, while BNY Mellon Asset Servicing is anticipated to function as the administrator and transfer agent. The promotional and distribution tasks will be undertaken by Foreside Fund Services.
The investment aim of the Trust is to guarantee that the value of its Shares corresponds to the value of the SOL held by the Trust, minus expenses and liabilities.
Although acquiring the Shares does not equate to a direct purchase of SOL, they are designed to provide a cost-effective and convenient alternative for investors seeking to gain exposure to this digital asset.
In addition to Grayscale’s Solana ETF request, the asset management firm has also submitted for a spot Litecoin ETF, aligning itself with other companies like Canary Capital and CoinShares, which have recently filed similar requests.
With Grayscale’s recent submission for a Solana ETF, the price of SOL witnessed a significant rise of 3.5%, reclaiming the $258 level.
Featured image from DALL-E, chart from TradingView.com
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