Grayscale Moves to Convert Solana Trust into a Spot ETF

An important step has been done by well-known cryptocurrency asset manager Grayscale Investments to increase the range of investment possibilities available in Solana. To convert its Solana Trust into a spot exchange-traded fund (ETF), the company submitted a 19b-4 application to the U.S. Securities and Exchange Commission (SEC).

Aims to Track Solana’s Value Accurately

Grayscale’s Solana Trust is currently the largest Solana-focused investment fund, managing $134.2 million in SOL. This represents about 0.1% of all Solana in circulation. By converting the trust into an ETF, Grayscale aims to offer investors a regulated and reliable avenue for gaining exposure to Solana.

Grayscale stated, “The Sponsor thus believes that allowing Shares of the Trust to list and trade on the Exchange as an ETP (i.e., converting the Trust to a spot SOL ETP) would provide other investors with a safe and secure way to invest in SOL on a regulated national securities exchange.”

This move aligns with the increasing interest in Solana ETFs, as asset managers compete to provide customers access to this rapidly growing digital asset.

Grayscale isn’t alone in pursuing Solana ETFs. VanEck made headlines earlier this year by becoming the first U.S. firm to apply for a SOL ETF. In June, VanEck submitted an S-1 registration statement to the SEC, signaling its confidence in Solana’s potential.

At the time, Matthew Sigel, VanEck’s head of digital assets research, linked the filing to broader market trends and the anticipation of Donald Trump’s return to the presidency.

Several other firms, including 21Shares, Canary Capital, and Bitwise, have also entered the Solana ETF race, highlighting the growing demand for crypto investment vehicles.

Grayscale’s filing reflects the increasing institutional interest in Solana and the broader adoption of regulated crypto investment products.