21Shares submits SOL spot ETF application! Experts divided on SEC approval

ETF issuer 21Shares has submitted Form S-1 for the 21Shares Core Solana ETF to the U.S. Securities and Exchange Commission (SEC), making it the second issuer to propose a SOL spot ETF after VanEck.

21Shares specializes in crypto ETPs

21Shares is a Swiss company that specializes in providing cryptocurrency exchange-traded products (ETPs). Founded in 2018 and headquartered in Zurich.

21Shares has issued 40 crypto ETPs, listed on 13 exchanges, with assets under management of US$3.2 billion (excluding ARKB). Its most famous is the Bitcoin spot ETF ARKB, which is a partnership with Ark, with current asset size of US$2.78 billion. The Ethereum spot ETF that was originally applied for together with Ark was later reported to have been too low and unprofitable, leading to Ark’s withdrawal. Instead, 21Shares independently applied to issue the 21Shares Core Ethereum ETF.

21Shares provides a variety of crypto products, including more than 30 cryptocurrencies such as ADA, ARB, AAVE, and BNB. For example, it recently launched a Toncoin-staking exchange-traded product (ETP)-TONN on the Swiss SIX Exchange, giving back the staking rewards to investors.

21Shares SOL ETP launched in Europe

21Shares will launch Solana Staking ETP (code ASOL) in Europe in 2021, with an asset size of US$810 million, 100% supported by physical SOL, and through professional risk management Gain access to staking yields (its staking yield is now 4.44%), providing individual investors with better protection than custody options. ASOL is listed on six European exchanges at the same time, providing investment options in US dollars, British pounds, euros and Swiss francs.

Experts divided on Solana ETF approval

VanEck filed for the first Solana exchange-traded fund (ETF) in the U.S. on June 27, with 21Shares not far behind.

Currently, the market has mixed opinions on the likelihood of the Solana ETF being approved. As the listing exchange for several Bitcoin spot ETFs, Cboe believes that it is impossible to create crypto ETFs other than Bitcoin and Ethereum without first establishing a futures market or changing regulatory conditions. JPMorgan and Bloomberg have also expressed doubts about the likelihood of approval, but Bernstein believes that the approval of the Ethereum ETF will pave the way for similar tokens such as Solana to gain commodity classification.

It’s worth noting that both 21Shares Core Solana ETF and VanEck Solana Trust choose to trade on the Cboe BZX exchange. According to the company's S-1 filing, the fund will be created and redeemed in cash, the same as other cash ETFs.

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