Solana
21shares files for Solana ETF in US, saying it’s a necessary step
Key takeaways
- 21Shares has filed an application for a Solana ETF named “21Shares Core Solana ETF”.
- The filing was made shortly after VanEck Solana ETF’s similar proposal.
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Following a decision by VanEck on Thursday, asset manager 21Shares deposit for a Solana exchange-traded fund (ETF) (SOL) now titled “21Shares Core Solana ETF.” Additionally, 21Shares reached out to X to share that they are “excited about the potential for a U.S. exchange-traded product (ETP) that provides access to the Solana ecosystem.”
The asset management firm said this is a necessary step for the crypto industry and is part of the company’s mission to make financial products easily accessible via crypto. Additionally, 21Shares praised Solana’s speed and cost-effectiveness, as did VanEck yesterday.
“The Solana ecosystem has evolved rapidly, delivering unmatched speeds and cost efficiencies. On June 28, 2021, exactly three years ago to the day, 21Shares, through its subsidiary 21Shares AG, announced the launch of the world’s first Solana ETP. The 21Shares Solana Staking ETP (ASOL) has over $950 million in assets under management as of May 31, 2024 and represents our largest product in the European market.”
It should be noted that the firm stressed that any future Solana ETP registered under the Securities Act of 1933 is not an investment company registered under the Investment Company Act of 1940 or a commodity pool for purposes of the Commodity Exchange Act. “Shares of any 33 Act trust are not subject to the same regulatory requirements as mutual funds.”
Additionally, 21Shares filed a Form S-1, an initial registration required by the U.S. Securities and Exchange Commission (SEC) before a security can be traded on an exchange.
Some of the crypto community is skeptical about the approval of a SOL spot ETF, as SOL does not have a regulated futures market on the Chicago Mercantile Exchange (CME) like Bitcoin and Ethereum.
Matthew Sigel, head of digital assets research at VanEck, called “stupid” emphasis on a “regulated market of significant size”. “There are already commodity ETFs in the areas of shipping, uranium and electricity, for which the futures market is not relevant for price formation. Monitoring sharing agreements with spot crypto exchanges can avoid the need for CME futures,” Sigel added.
Although SOL jumped 10% In the hour since VanEck filed for an ETF yesterday, the 21Shares news hasn’t had the same impact today. At the time of writing, SOL is up just 0.3% in the past hour and down 3.5% in the previous 24 hours.
This is a developing story: we will keep you updated as more is learned.
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