The cryptocurrency scene in Wall Street has taken a significant turn. Wealth manager 21Shares has filed for a spot Solana (SOL) ETF with the U.S. Securities and Exchange Commission (SEC). This application, submitted on Friday, marks the second such bid, following VanEck’s earlier submission for a Solana Trust.
The 21Shares Core Solana ETF, like its predecessor, has notably excluded crypto staking from its proposal. This trend aligns with the recent moves by other crypto-backed ETFs. Solana, alongside Bitcoin (BTC) and Ethereum (ETH), has become a focal point in this ETF cycle. Successful Bitcoin ETF approvals and the anticipated green light for Ethereum ETFs have set the stage for Solana’s entry into the ETF market, aimed at attracting institutional capital.
However, industry experts, including Wintermute CEO Evgeny Gaevoy, express skepticism about the immediate viability of spot Solana ETFs. Gaevoy suggests that significant inflows into spot ETH ETFs might be unlikely, potentially dampening investor enthusiasm for another crypto investment product.
A recurring theme among spot Solana ETF filings is the classification of SOL as a commodity rather than a security. This approach mirrors the strategy of spot Ethereum ETF issuers. On June 27, Matthew Sigel, VanEck’s head of digital assets research, highlighted SOL’s similarities to digital commodities like Bitcoin and Ether. He emphasized its role in facilitating transaction fees and blockchain computational services payments.
Sigel also noted that no single entity controls the SOL network, underscoring its decentralized nature and commodity status. He further remarked on the broad applications of the SOL ecosystem, from decentralized finance (DeFi) to non-fungible tokens (NFTs), which enhance SOL’s utility and value as a digital commodity.
The filing by 21Shares reflects the growing interest and potential of Solana in the digital asset market. As the SEC reviews these applications, the anticipation builds for what could be a significant development in the cryptocurrency investment landscape.
