AnewdigitalassetmanagerhasfiledtolaunchaspotSolanaexchange-tradedfund(ETF),joiningagrowingpileofhopefulsthatalsoincludestheestablishedfirmsVanEckand21Shares.
CanaryCapital—whichthismonthfiledtotheSecuritiesandExchangeCommission(SEC)forXRPandLitecoinproducts—madethefilingfortheproposedCanarySolanaETFonWednesday.
AnETFisapopularinvestmentvehiclethattradesonstockexchanges.IftheSECweretoapprovetheCanarySolanaETF,investorswouldbeabletobuysharesthattrackthepriceofSOL,andgainexposuretothecoinwithouthavingtopurchaseandstorecryptocurrency.
SOListhefifth-biggestdigitalasset.Itsnativeblockchainisusedfordecentralizedapplications(dapps),decentralizedfinance(DeFi),memecoins,andmore.It\'sseenasakeyrivaltoEthereum,thenetworkbehindETH,offeringcheaperandfastertransactions.
Thecoincurrentlyhasamarketcapof$82billion,andhasseena400%jumpinvalueoverthelastyearatacurrentpriceofabout$175.
CanaryCapitalisaNashville,Tennessee-basedfirmthatlaunchedinSeptember.Itaimstogiveinstitutionscryptotradingandmanagementsolutions.
InJanuary,theSECapprovedBitcoinETFsandtheystartedtradingthesamemonth,whileEthereumETFswereapprovedinMayandbegantradinginJuly.Buttheregulatorappearedreluctanttomakesuchmoves,following10yearsofattemptstogainapprovalsforBitcoinfunds,andtheagencyfrequentlyhitscryptocompanieswithlawsuitsduetoallegationsthattheysellunregisteredsecurities.
TheSEChasspecificallyallegedthatitthinksSOLisanunregisteredsecurity.AnalystsbelievethatSolanaETFswilleventuallybeapprovedintheUnitedStatesfollowingtherecentBitcoinandEthereumfundnods,butthespeedofsuchamovecoulddependontheoutcomeofnextweek\'sU.S.elections—andhowmuchlongerGaryGenslerremainsChairmanoftheSEC.
VanEckand21SharesfiledtheirrespectiveapplicationstolaunchaspotSolanaETFbackinJune.BothfirmsalsoofferBitcoinandEthereumETFsintheUnitedStates.
EditedbyAndrewHayward
decrypt.co