Grayscale Files New S-1 Form for Solana ETF With SEC
Key Takeaways:
- Grayscale shifts its approach by converting the Solana trust into an ETF, offering a regulated, liquid entry point for crypto exposure amid evolving market trends.
- SEC approval is required before the new structure takes effect.
- Investors gain regulated access without direct asset handling.
- The effort mirrors similar steps with other crypto trusts.
- Broader market trends and technical signals add extra context.
Grayscale Investments filed an updated S-1 registration form with the U.S. Securities and Exchange Commission (SEC) on Friday, seeking to convert its existing Solana Trust into an ETF listed on NYSE Arca.
Grayscale’s Filing and Proposed Solana ETF Conversion
In its submission, Grayscale outlined plans to rename the trust as the Grayscale Solana Trust ETF, pending regulatory approval. The filing notes that if the registration becomes effective and shares are approved for listing on NYSE Arca, the trust would transition into an ETF structure. By turning its Solana Trust into an ETF, Grayscale seeks to offer investors a regulated and more liquid way to gain exposure to Solana (SOL) without needing to directly buy or store the asset.
SEC Review Pending for Solana ETF Conversion
As of the filing date, the SEC had not yet approved the required 19b-4 form, which NYSE Arca submitted on December 3, 2024. This rule, part of the Securities Exchange Act of 1934, mandates that exchanges file for approval when listing new products like the proposed Solana ETF. Grayscale acknowledged in the filing that approval is not guaranteed and the conversion process will not proceed without it.
Grayscale’s effort to bring a Solana ETF to market comes amid increasing institutional interest. The move mirrors Grayscale’s earlier conversion of its Bitcoin Trust into an ETF earlier in 2024, after lengthy regulatory delays. The potential approval of a Solana ETF could mark a shift in how U.S. investors gain access to Solana.
Solana Price Drops Amid Tariff Shock and Technical Signals
While regulatory efforts continue, Solana’s price has responded to broader macroeconomic headwinds. The cryptocurrency dropped 8% to $115 following former U.S. President Donald Trump’s announcement of new tariffs, which triggered sharp movements across financial markets.
Bitcoin and Ethereum also fell by over 4%, dragging down the broader crypto market. A technical analyst on X warned that if Solana breaks below a key support level on the weekly chart, they plan to sell the remaining SOL holdings from their previous all-time high exit.
Solana is currently under pressure as technical indicators point to a bearish trend, compounded by macroeconomic uncertainty. Despite this volatility, institutional interest and ongoing developments—such as Fidelity’s ETF filing—underscore continued interest in Solana’s future utility despite recent price swings.
