21SHARES FILES APPLICATION FOR SPOT SOLANA ETF

Last updated: June 19, 2025, 20:04 | Written by: Justin Sun

The cryptocurrency landscape is constantly evolving, and the latest development signaling mainstream acceptance is the race for a Spot Solana ETF.Just a day after VanEck threw its hat in the ring, 21Shares, a prominent digital asset investment firm, officially filed its application with the U.S. ETFs based on the spot price of bitcoin, which has a $1.1 trillion market cap, won SEC approval on Jan. 10 and have generated about $15 billion in inflows, according to U.K.-based asset managerSecurities and Exchange Commission (SEC) on Friday, June 28th.This move marks a significant milestone for Solana (SOL), positioning it alongside Bitcoin (BTC) and Ethereum (ETH) as a cryptocurrency attracting substantial institutional interest.The proposed fund, named the 21Shares Core Solana ETF, aims to provide investors with a regulated and accessible way to gain exposure to SOL's price movements without directly holding the digital asset.But what does this mean for investors, the Solana ecosystem, and the future of crypto ETFs? When referring to the native digital asset of the Solana network, SOL is written in uppercase letters. Overview of the Trust . The 21Shares Core Solana ETF (the Trust ) is an exchange-traded fund that issues common shares of beneficial interest (the Shares ) that trade on the Cboe BZX Exchange, Inc. (the Exchange ).Will the SEC approve these applications, paving the way for wider adoption? Asset manager 21Shares filed for a spot Solana exchange-traded fund on Friday. The index, named 21Shares Core Solana ETF, is calculated daily and aggregates the notional value of SOL trading activity across major SOL spot exchanges, according to the S-1 registration form filed with the U.S. Securities and Exchange Commission (SEC).This article delves into the details of the 21Shares filing, its potential impact, and the broader implications for the cryptocurrency market.

Understanding the 21Shares Core Solana ETF Application

The filing of the 21Shares Core Solana ETF application is a pivotal moment for the Solana community.Here's a breakdown of what we know so far:

Filing Date: June 28th
Issuer: 21Shares, a digital asset investment firm
Proposed Fund Name: 21Shares Core Solana ETF
Listing Exchange: Cboe BZX Exchange
Custodian: Coinbase
Staking: The proposed fund will *not* engage in staking SOL.
Index: The fund will track an index aggregating the notional value of SOL trading activity across major spot exchanges.

The application is an S-1 registration statement, a standard form required by the SEC for new securities offerings.It details the fund's structure, investment strategy, and potential risks.According to the filing, the fund aims to provide investors with a simple and transparent way to invest in SOL.

Why a Spot Solana ETF Matters

The introduction of a spot Solana ETF could have a profound impact on the cryptocurrency market. Asset manager 21Shares has filed for a spot Solana exchange-traded fund (ETF), marking the second such application from a major firm this week. The proposed 21Shares Core Solana ETF is designed to track the performance of Solana (SOL) by aggregating the notional value of SOL trading activity across major spot exchanges, according to the S-1 registration form filed with the US Securities andHere are some key reasons why it matters:

Increased Accessibility: ETFs are easily accessible to a wide range of investors through traditional brokerage accounts. 21Shares filed an S-1 application with the United States Securities and Exchange Commission for a spot Solana exchange-traded fund (ETF) on June 28. The fund will be called the 21Shares Core Solana ETF. This is the second application the SEC has received for a spot SOL ETF, following VanEck s filing on June 27.This lowers the barrier to entry for individuals and institutions who may be hesitant to directly purchase and store SOL.
Enhanced Liquidity: ETFs provide increased liquidity for the underlying asset.The trading volume of the ETF can help to stabilize and deepen the market for SOL.
Regulatory Oversight: ETFs are subject to regulatory oversight by the SEC, which can provide investors with a greater sense of security and confidence.
Mainstream Adoption: The approval of a spot Solana ETF would signal a significant step towards mainstream adoption of cryptocurrencies.It would validate SOL as a legitimate asset class and attract further institutional investment.
Price Discovery: A Solana ETF can contribute to more efficient price discovery for SOL, as it reflects the aggregate demand and supply from a broader investor base.

Essentially, a Solana ETF brings the digital asset into the traditional financial world, making it more palatable and understandable for a wider audience.It also provides diversification opportunities for traditional portfolios.

The SEC's Decision: A Look at the Approval Process

The SEC's decision on the 21Shares application is highly anticipated.Under SEC rules, the agency has 240 calendar days to decide whether to approve or deny the Cboe's 19b-4 application to list the Solana ETF.The process involves a thorough review of the application, including:

Market Surveillance: The SEC will assess the ability of the exchange to monitor and prevent fraud and manipulation in the SOL market.
Custody Arrangements: The SEC will scrutinize the custody arrangements for SOL, ensuring that assets are safely stored and protected.Coinbase, as the custodian, will play a crucial role in this regard.
Investor Protection: The SEC will evaluate the ETF's structure and disclosure practices to ensure that investors are adequately informed about the risks and benefits of investing in the fund.
Liquidity and Valuation: The SEC will assess the liquidity of the SOL market and the accuracy of the ETF's valuation methodology.The index tracking SOL trading activity across major spot exchanges will be key here.

The SEC's track record on crypto ETFs has been mixed.While it recently approved spot Bitcoin ETFs, it has historically been cautious about approving ETFs based on other cryptocurrencies.The key concerns have centered on market manipulation and investor protection. Digital assets investment firm 21Shares has filed for regulatory approval to launch an exchange-traded fund (ETF) tied to the spot price of Solana (SOL). This filing, submitted on FridayHowever, with the increasing maturity of the crypto market and the establishment of robust custody and surveillance solutions, the SEC may be more willing to approve a spot Solana ETF.Bloomberg ETF analysts James Seyffart and Eric Balchunas have suggested that spot crypto ETFs across the board have relatively high odds of approval, estimating a 70% chance for Solana spot ETFs.

Factors Influencing the SEC's Decision

Several factors will influence the SEC's decision on the 21Shares application, including:

The success of Bitcoin ETFs: The performance and trading volume of spot Bitcoin ETFs will likely influence the SEC's perception of the crypto ETF market. Grayscale Investments want to uplist its Grayscale Solana Trust as full ETF The firm plans to list the product on the NYSE Arca exchange Speculations continue to grow on whether more asset managers will join the crypto ETF train Asset Management firm Grayscale Investments has applied to list a spotTheir success could pave the way for the approval of other crypto ETFs.
Regulatory Clarity: The ongoing development of regulatory frameworks for cryptocurrencies will play a crucial role.Greater clarity on issues such as custody, taxation, and market manipulation would increase the SEC's comfort level.
Market Maturity: The continued maturation of the Solana ecosystem, including increased liquidity, improved custody solutions, and reduced volatility, would strengthen the case for a spot Solana ETF.
Political Pressure: Political pressure from industry participants and lawmakers could also influence the SEC's decision.

The Solana Ecosystem: A Thriving Blockchain

Solana is a high-performance blockchain known for its speed, scalability, and low transaction fees.It has emerged as a popular platform for decentralized applications (dApps), non-fungible tokens (NFTs), and decentralized finance (DeFi) protocols.Its unique architecture, based on Proof of History (PoH) and Proof of Stake (PoS) consensus mechanisms, allows it to process thousands of transactions per second, making it a viable alternative to Ethereum.

Here are some key features of the Solana ecosystem:

High Transaction Throughput: Solana can handle a large volume of transactions, making it suitable for applications requiring fast and efficient processing.
Low Transaction Fees: Transaction fees on Solana are significantly lower than those on Ethereum, making it more affordable for users.
Scalability: Solana's architecture is designed to scale as the network grows, ensuring that it can handle increasing demand.
Developer-Friendly: Solana provides developers with a robust set of tools and resources for building dApps.
Growing Ecosystem: The Solana ecosystem is rapidly growing, with a diverse range of projects and applications.

The growth and development of the Solana ecosystem are crucial to the long-term success of a spot Solana ETF.A thriving ecosystem will attract more users and developers, increasing the demand for SOL and supporting the ETF's value.

Potential Benefits for Solana (SOL) Holders

If the 21Shares Core Solana ETF is approved, it could bring several benefits to existing SOL holders:

Increased Demand: The ETF would create a new source of demand for SOL, potentially driving up its price.
Greater Liquidity: The ETF would increase the liquidity of the SOL market, making it easier for holders to buy and sell their tokens.
Wider Adoption: The ETF would introduce SOL to a wider audience, potentially leading to greater adoption of the Solana blockchain and its applications.
Validation of SOL: The approval of a spot Solana ETF would validate SOL as a legitimate asset class, increasing its credibility and attracting further investment.

It's important to remember that these are potential benefits and not guarantees. Digital assets investment firm 21Shares has filed for regulatory approval to launch an exchange-traded fund (ETF) tied to the spot price of Solana (SOL). This filing, submitted on Friday, follows a similar move by VanEck just a day earlier.The price of SOL is still subject to market volatility and other factors.

Risks to Consider Before Investing in a Solana ETF

Investing in a spot Solana ETF, like any investment, involves risks. 21Shares has officially filed for a Spot Solana ETF. Indeed, the Spot Bitcoin ETF issuer filed a new crypto-based ETF with the US Securities and Exchange Commission (SEC) Friday. The filing is the second SOL ETF application made this week, following VanEck s yesterday.Here are some key risks to consider:

Regulatory Risk: The regulatory landscape for cryptocurrencies is still evolving.Changes in regulations could negatively impact the value of SOL and the ETF.
Market Volatility: The cryptocurrency market is highly volatile.The price of SOL can fluctuate significantly, potentially leading to losses for investors.
Security Risks: Although the ETF itself is regulated, the underlying asset, SOL, is subject to security risks such as hacking and theft.
Competition: The cryptocurrency market is highly competitive. Solana ETF Approval May Come Next . The approval of the S-1 form is crucial as it allows the issuer to list and trade Solana ETFs. With this filing on Friday, JShares solidifies its position among crypto ETF applicants.New cryptocurrencies and blockchain platforms could emerge, potentially reducing the demand for SOL.
Technological Risks: The Solana blockchain is still relatively new. 21Shares is the simplest way to invest in the best performing asset class of the last decade using your existing bank or brokerage. Ethereum Spot ETF - CETHTechnological issues or vulnerabilities could negatively impact the value of SOL.

Investors should carefully consider these risks before investing in a spot Solana ETF. Bitwise Asset Management has taken a significant step toward launching a spot Solana exchange-traded fund (ETF). On Nov. 20, the company registered a statutory trust in Delaware through CSC Delaware Trust, signaling plans to file with the Securities and Exchange Commission (SEC) for approval.It's essential to do your own research and consult with a financial advisor before making any investment decisions.

Alternatives to Investing in a Spot Solana ETF

While a spot Solana ETF offers a convenient way to gain exposure to SOL, there are alternative ways to invest in Solana and participate in its ecosystem:

Direct Purchase of SOL: Investors can purchase SOL directly from cryptocurrency exchanges and store it in their own wallets. ARK Invest and 21Shares have officially filed for a spot Solana ETF. This move aims to make Solana more accessible to investors through traditional markets. However, the filing comes with a majorThis allows for greater control over their assets but also requires them to manage their own security.
Staking SOL: Investors can stake their SOL tokens to earn rewards.Staking involves locking up SOL to help secure the Solana network.
Investing in Solana-Based Projects: Investors can invest in projects and applications built on the Solana blockchain.This allows them to participate in the growth of the Solana ecosystem.
Grayscale Solana Trust (GSOL): While not an ETF, the Grayscale Solana Trust offers exposure to SOL. 21Shares has filed an application with the SEC for a spot Solana ETF, aiming to list on the Cboe BZX Exchange. The proposed fund will not engage in staking SOL and Coinbase will act as custodian.Grayscale is also seeking to convert GSOL into a spot ETF, mirroring their strategy with Bitcoin and Ethereum trusts.

Each of these options has its own advantages and disadvantages.Investors should carefully consider their individual circumstances and investment goals before choosing an investment strategy.

21Shares: A Pioneer in Crypto ETFs

21Shares has established itself as a leader in the crypto ETF space, offering a wide range of exchange-traded products (ETPs) across Europe and, increasingly, in the United States.Their filing for a spot Solana ETF underscores their commitment to providing investors with innovative and accessible ways to invest in digital assets. 21Shares filed an S-1 application with the United States Securities and Exchange Commission for a spot Solana exchange-traded fund (ETF) on June 28. The fund will be called the 21Shares Core Solana ETF. This is the second application the SEC has received for a spot SOL ETF, following VanEck s filinThe firm's experience in navigating the regulatory landscape and managing complex investment products makes them a credible applicant for a spot Solana ETF.

Other 21Shares ETF Applications

While the focus is on the Solana ETF, it's worth noting that 21Shares has also been active in other areas of the crypto ETF market. The 21Shares spot Solana ETF application is the second of its kind, as SOL has taken center stage during this cycle alongside heavy hitters like Bitcoin (BTC) and Ethereum (ETH). After successful Bitcoin ETF and forthcoming Ethereum ETF approvals, SOL has emerged as the next cryptocurrency to assume the exchange-traded fund wrapper used toThey have, for example, filed an application for a spot Dogecoin ETF, showcasing their interest in expanding beyond the dominant cryptocurrencies like Bitcoin and Ethereum.

Grayscale's Solana ETF Conversion: A Parallel Path

Adding another layer to the Solana ETF narrative is Grayscale Investments' initiative.Grayscale, known for its cryptocurrency trusts, is seeking to convert its Grayscale Solana Trust (GSOL) into a spot ETF.This mirrors their successful conversions of their Bitcoin and Ethereum trusts and presents another avenue for a Solana ETF to reach the market.Grayscale plans to list the product on the NYSE Arca exchange. 21 Shares files application for spot Solana ETFDonate to my EVM wallet:0x62ecFf e9D ab4Bd124B5cF664cBuy me a Beer:The existence of both 21Shares' and Grayscale's applications highlights the growing institutional appetite for Solana-based investment products.

The Broader Implications for the Cryptocurrency Market

The potential approval of a spot Solana ETF could have far-reaching implications for the cryptocurrency market as a whole:

Increased Institutional Adoption: It would further legitimize cryptocurrencies as an asset class and attract more institutional investment.
Validation of Altcoins: It would demonstrate that the ETF structure can be applied to cryptocurrencies beyond Bitcoin and Ethereum.
Innovation in Crypto Investment Products: It would encourage the development of new and innovative crypto investment products.
Greater Regulatory Clarity: It would put pressure on regulators to provide greater clarity and guidance for the cryptocurrency market.

Ultimately, the approval of a spot Solana ETF would be a positive development for the entire cryptocurrency ecosystem.

Conclusion: The Future of Solana Investment

The filing of the 21Shares application for a spot Solana ETF marks a significant step towards mainstream adoption of SOL and the Solana blockchain.It provides a potential pathway for investors to access SOL through a regulated and accessible investment vehicle.While the SEC's decision is uncertain, the increasing maturity of the crypto market, the success of Bitcoin ETFs, and the strong fundamentals of the Solana ecosystem suggest that the odds are in favor of approval. Bloomberg ETF analysts James Seyfatt and Eric Balchunas put out relatively high odds of approval for spot crypto ETFs across the board. Seyfatt and Balchunas acknowledged that Litecoin ETFs had the highest chance of approval, with a 90% chance. The analysts also estimated that Solana spot ETFs had a 70% chance of getting approval from the SEC.Whether it's through 21Shares, Grayscale, or another issuer, a Solana ETF is poised to reshape how investors interact with this dynamic cryptocurrency. Digital assets investment firm 21Shares has filed for regulatory approval to launch an exchange-traded fund (ETF) tied to the spot price of Solana (SOL).This filing, submitted on Friday, follows a similar move by VanEck just a day earlier.The developments surrounding the spot Solana ETF represent not just a potential investment opportunity, but a validation of Solana's place in the future of finance. The Solana (SOL) ETF mania is picking momentum with yet another issuer filing for a spot Solana ETF. A day after VanEck filed for a similar exchange-traded fund with the US Securities Exchange Commission (SEC), 21Shares has submitted its own application. 21Shares files for Solana ETFAs the SEC deliberates, the cryptocurrency community will be watching closely, anticipating a decision that could unlock a new era for Solana and the broader digital asset landscape.Key takeaways include: Increased accessibility, potential for wider adoption, regulatory scrutiny and market volatility. The ETF would be a conversion of its existing Grayscale Solana Trust into a spot ETF, just as it converted its spot Bitcoin and Ether trusts into ETFs. Extract from Grayscale s 19b-4 filing toThe decision from the SEC is highly anticipated and will likely impact the entire crypto market.