As a seasoned crypto investor with a keen interest in the latest developments within the industry, I can’t help but feel an surge of excitement upon hearing about 21Shares’ recent S-1 application to issue spot Solana ETFs. This comes on the heels of VanEck’s earlier application and the momentum gained from 3iQ’s filing in Canada last week.
21Shares filed an S-1 application with the US Securities and Exchange Commission (SEC) to issue spot SOL ETFs. With that, it is the second asset management firm to apply with the regulator to issue an approved product backed by Solana’s native asset. The first was VanEck—when it applied for the ETF issuance on 27 June.
The demand for SOL Exchange-Traded Funds (ETFs) in North America has surged since 3iQ’s filing to introduce the product in Canada last week. In response, American asset managers have shown increasing interest, with further applications anticipated in the near future. Notably, 21Shares, which already offers Bitcoin ETFs approved in the US, in collaboration with ARK Invest, has introduced the ARK 21Shares Bitcoin ETF (ARKB) and even provides future Bitcoin and Ethereum ETFs in the US as part of their partnership.
The company is shifting gears and intends to offer its Ethereum and Solana ETFs independently instead of jointly with ARK. If granted approval, it will introduce the “21Shares Core Solana ETF” for Solana separately from the existing collaboration. Similarly, it plans to bring forth its Ethereum ETF under its own branding as well.
ALSO READ: VanEck Wants to Issue SOL ETFs in the US
The ETF relies on Coinbase Custody for securely holding the Solana (SOL) reserves. In separate wallets linked to the Solana blockchain, Coinbase keeps these SOL assets. Importantly, these SOL coins won’t be utilized for staking or other revenue-generating activities within the ETF. Additionally, Coinbase’s exclusive custody insurance safeguards the SOL stored on behalf of 21Shares.
The cost of Solana (SOL) surged from $139 to $150 following the announcement of 21Shares’ application for SOL-based Exchange Traded Funds (ETFs). A comparable price increase occurred when VanEck applied for similar funds. Although the Securities and Exchange Commission (SEC) is unlikely to approve these applications in the current administration, analysts speculate that a change in presidency could lead to their launch in 2022. Previous indications suggest that Donald Trump has been supportive of the crypto industry’s growth. Consequently, if Trump secures another term, SOL ETFs might be introduced imminently.
Photo by GuerrillaBuzz on Unsplash
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2024-07-02 09:17