21Shares Files Application for a Solana ETF in the US, Following VanEck\'s Lead

This breaking news highlights how 21Shares' application for a Solana ETF in the US follows VanEck's recent lead.

21Shares has submitted an application for a Solana ETF in the US, following VanEck’s recent lead. This move highlights growing optimism for a Solana ETF amidst evolving crypto regulatory dynamics.

As reported earlier by CNF, VanEck filed for the first Solana ETF in the US with the Securities and Exchange Commission (SEC). Now, 21Shares has also joined the race with its application for a Solana ETF in the US.

This development comes amid increasing anticipation for a Solana ETF in the US, with several applications already pending with the SEC. Against the backdrop of regulatory shifts, optimism is mounting for the approval of a Solana ETF in the US.

21SHARES CORE SOLANA ETF

21Shares is aiming to launch the 21Shares Core Solana ETF, designed to provide investors with a convenient and cost-effective avenue to gain exposure to Solana without directly investing in the cryptocurrency itself.

This ETF will track the performance of SOL, the native token of the Solana blockchain, and will be listed on Cboe BZX Exchange. The expense ratio of the ETF is set at 0.75%.

According to the filing, the ETF will primarily invest in SOL, with the goal of tracking the price movements of the cryptocurrency. However, the ETF may also hold other assets, such as cash equivalents and short-term U.S. Treasury securities, to meet regulatory requirements and optimize efficiency.

The ETF will not directly hold Solana, but rather a Cayman Islands-based company that holds SOL in a cold wallet. This structure is commonly used by cryptocurrency ETFs to avoid the legal and regulatory hurdles involved in holding the digital asset directly.

Solana (SOL) is used to pay for transaction fees and computational services on the Solana blockchain, in a manner similar to how ether is utilized on the Ethereum network. This role in the functioning of the Solana blockchain contributes to SOL's status as a digital commodity.

VanEck's decision to file for a Solana ETF is based on this definition, which is crucial for the ETF's regulatory approval. Notably, the SEC has yet to approve any cryptocurrency ETFs that directly track the price of a digital asset.

Instead, the ETFs that have been approved by the SEC to date are linked to derivatives or other financial instruments that indirectly provide exposure to cryptocurrencies. This regulatory landscape presents a significant challenge for cryptocurrency ETF hopefuls.

However, with the growing adoption and mainstream interest in cryptocurrencies, the pressure is mounting on the SEC to reconsider its stance and open the door for ETFs that directly track digital assets like Bitcoin and Ethereum.

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