Spot Solana ETF Race: 21Shares Updates Application After US SEC Requests Amendments

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The race for a Spot Solana Exchange-Traded Fund (ETF) is drawing significant attention and efforts in the crypto sector, with several asset management companies submitting applications for the fund. As the deadline of approval draws near for the fund, 21Shares has taken a bold step to improve its spot SOL ETFs.

21Shares Amends Spot Solana ETF Filing

In a significant development for the Solana ecosystem and broader crypto market, 21Shares has submitted an updated version of its Spot Solana ETF application. Such a move is a sign of an unwavering desire to introduce SOL-based investment products into traditional markets.

SolanaFloor, a platform for SOL news, reported the key move in a recent post on the social media platform X, reflecting growing momentum among asset managers to create crypto ETFs that extend beyond Bitcoin and Ethereum.

As the company looks to the US Securities and Exchange Commission (SEC) for clearance, the updated filing attempts to bolster the proposal and address regulatory concerns about the fund. Specifically, the updated version responds to the US SEC comments on key areas of the fund, such as in-kind redemptions. 

21Shares’ Core Solana ETF (the Trust) is sponsored by 21Shares US LLC, previously known as Amun Holdings Limited. Furthermore, it is an exchange-traded fund that trades on the Cboe BZX Exchange, Inc. (the Exchange) and issues common shares of beneficial interest (the Shares). 

In seeking to achieve its investment objective, the Trust will hold SOL and use the Pricing Benchmark to determine the daily value of its shares. However, it is important to note that an investment in the Trust is neither a direct investment in SOL nor does it give investors direct exposure to the altcoin. Instead, it offers investors the chance to enter the SOL market indirectly through a conventional brokerage account, avoiding the dangers and any obstacles of the spot market.

According to the application, “all of the Trust’s SOL will be held by the SOL Custodian,” which is the Coinbase Custody Trust Company, LLC. The Custodian carries protection from private insurance companies rather than being insured by the Federal Deposit Insurance Corporation (FDIC).

More Companies Are Joining The Fray

Since the move for a Spot Solana ETF, several companies have submitted applications for the funds. The latest application for a spot SOL ETF submitted to the US SEC came from the Cboe BZX Exchange.

A Few days ago, Cboe BZX filed to list the Invesco Galaxy SOL ETF on the exchange. Cboe’s ETF, which is a commodity-based trust under BZX Rule 14.11, aims to provide regulated access to SOL with integrated staking incentives. This move comes weeks following the launch of the first Solana Staking ETF in the United States.

If authorized by the Commission, the Invesco Galaxy SOL ETF would rank among the first Solana spot ETFs offered in the US. When approved, both cash and in-kind creations and redemptions will be permitted by the fund.

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