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Important takeouts:
- Grayscale shifts its approach by converting Solana Trust to ETFs, providing a regulated liquid entrance for crypto exposure amid evolving market trends.
- SEC approval is required before the new structure becomes effective.
- Investors gain regulated access without direct asset settlement.
- This effort reflects similar procedures to other crypto trusts.
- The broader market trends and technical signals add additional context.
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Grayscale Investments filed an updated S-1 registration form with the U.S. Securities and Exchange Commission (SEC) on Friday to convert an existing Solana Trust into an ETF listed in NYSE Arca.
Submitting Grayscale and Proposal for Solana ETF Conversion
In that submission, Grayscale outlined plans to rename The Trust the Grayscale Solana Trust ETF, as it has withheld regulatory approval.
Please note that the filing will transition to the ETF structure if registration is enabled and the shares are approved on the NYSE ARCA list.
By converting Solana Trust into an ETF, Grayscale is trying to provide investors with a more regulated, more fluid way of exposing them to Solana (SOL) without the need to buy or store assets directly.
SEC Reviews Solana ETF Conversion Pending
As of the filing date, the SEC had not yet approved the required 19B-4 form filed by the NYSE ARCA on December 3, 2024.
This rule, part of the Stock Exchange Act of 1934, requires that exchanges be approved for approval when listing new products such as proposed Solana ETFs.
Grayscale admitted in submission that approval was not guaranteed and that the conversion process would not proceed without it.
Grayscale’s efforts to bring Solana ETFs to the market lies amid growing institutional interest. The move reflects the grayscale, which previously converted Bitcoin Trust into ETFs in early 2024 after a long-term regulatory delay.
Potential approvals for the Solana ETF could indicate a change in the way US investors access Solana.
Solana Price drops amid tariff shock and technical signal
Regulatory efforts continue, but Solana prices are addressing broader macroeconomic headwinds.
Cryptocurrency has dropped 8% to $115, following the announcement of new tariffs by former US President Donald Trump, causing sharp moves across financial markets.
Bitcoin and Ethereum also fell by more than 4%, dragging the broader crypto market.
X’s technical analyst warned that if Solana falls below the major support level on its weekly charts, it plans to sell the remaining Sol Holdings from previous all-time high exits.
Solana is currently under pressure as technical indicators refer to bearish trends exacerbated by macroeconomic uncertainties.
Despite this volatility, institutional interests and continued development, such as Fidelity’s ETF submission, continue to have a continuing interest in Solana’s future utility despite recent price fluctuations.
The post-grayscale file for Solana ETF with SEC first appeared on Cryptonews.
