Asset manager 21Shares has applied for a spot in Solana exchange-traded fund (ETF). This marks the second such application from a major firm this week. The 21Shares Core Solana ETF aims to track Solana’s (SOL) performance by collecting the notional value of SOL trading activity across major spot exchanges.

Coinbase Custody Trust Company is set to act as the custodian, as detailed in the S-1 registration form filed with the US Securities and Exchange Commission (SEC).

This filing follows a similar application by VanEck on June 27, which led to a 7% increase in SOL’s price. However, 21Shares’ filing did not immediately impact SOL’s price, with the token trading at $140.2 as of press time, down over 6% on the day.

This contrasting market reaction highlights differing investor responses to similar announcements.

In addition to US filings, Canadian fund manager 3iQ filed for a spot in the Solana ETF earlier this month. They plan to launch the first such product in North America on the Toronto Stock Exchange. This move reflects growing confidence and interest in Solana as a viable asset for institutional investment.

Growing interest in Solana ETFs

The increase in interest around Solana ETFs comes as the crypto market anticipates regulatory changes and increased acceptance. Despite recent applications, the absence of a Solana futures product is seen as a potential hurdle for approval.

However, some believe a change in leadership could facilitate the process. Eric Balchunas, a senior ETF analyst at Bloomberg, remarked that while current leadership may pose challenges, future changes could improve approval prospects.

Following the approval of spot Ether ETFs in May, Bernstein analysts suggested that Solana might also be classified as a commodity.

This follows the SEC’s decision to drop its investigation into Ethereum 2.0, indicating a potential shift in the agency’s view of certain digital assets. This classification could ease the path to ETF approval for Solana.

Solana’s market position

Many industry experts believe Solana’s importance in the crypto market makes it a strong candidate for ETF approval. CNBC’s Brian Kelly recently highlighted Solana as potentially the next major crypto asset to receive ETF approval, following Bitcoin and Ethereum.

He noted the success of Bitcoin ETFs, which have gathered a significant amount of Bitcoin, valued at around $58 billion, indicating strong demand for regulated crypto investment products.

VanEck’s head of digital research, Matthew Sigel, recently compared Solana to other digital commodities like Bitcoin and Ether.

He highlighted Solana’s use in transactions and computational services on the blockchain. Sigel emphasized Solana’s robust attributes, including high throughput, low transaction fees, strong security protocols, and a vibrant community. These factors position Solana favorably for an ETF.

Prospects from 21Shares

The changing regulations and Solana’s rising importance in crypto boost optimism for spot Solana ETF approval. As filings proceed and the market adapts, these ETFs could significantly impact investment opportunities and market trends.

Investors and industry watchers are alert to these changes and anticipate shifts in the crypto investment scene. 21Shares’ and VanEck’s recent filings for spot Solana ETFs show a growing trend and increased institutional interest in Solana.

With regulatory changes on the horizon, the crypto market expects progress in approving and adopting these products. Major asset managers and analysts show confidence in Solana’s growing significance as a key digital currency asset.

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