A new digital asset manager has filed to launch a spot Solana exchange-traded fund (ETF), joining a growing number of hopefuls that also includes established firms VanEck and 21Shares.
Canary Capital, which filed XRP and Litecoin products with the Securities and Exchange Commission (SEC) this month, filed the S-1 filing for the Canary Solana ETF project on Wednesday.
An ETF is a popular investment vehicle traded on an exchange. If the SEC were to approve the Canary Solana ETF, investors could purchase stocks that track the price of SOL and gain exposure to the coin without having to purchase and store cryptocurrency.
SOL is the fifth largest digital asset. Its native blockchain is used for decentralized applications (dapps), decentralized finance (DeFi), meme coins, etc. It is considered a key rival to Ethereum, the network behind ETH, offering cheaper and faster transactions.
The coin currently has a market cap of $82 billion and its value has surged 400% over the past year to a current price of around $175.
“Despite the hyper-competitive L1 and EVM landscape, Solana has become a proven leader for decentralized applications,” Canary said in a statement. “Solana’s robust DeFi ecosystem has led to strong sustained on-chain analytics, as measured by transactions per day, active addresses, and new addresses, while maintaining a low fee environment for all consumers. The future growth of native deployment of on-chain stablecoins will also likely further accelerate the dominant lead that Solana maintains over its peers.
Canary Capital is a Nashville, Tennessee-based company that launched in September. It aims to offer institutions cryptocurrency trading and management solutions.
In January, the SEC approved Bitcoin ETFs and they began trading in the same month, while Ethereum ETFs were approved in May and began trading in July. But the regulator appeared reluctant to take such steps, after 10 years of trying to gain approvals for Bitcoin funds, and the agency frequently pursues crypto companies with lawsuits over allegations that they sell unsecured securities. recorded.
The SEC specifically alleged that it believed SOL was an unregistered security. Analysts believe Solana ETFs will ultimately be approved in the US following recent nods from Bitcoin and Ethereum funds, but the speed of such a move could depend on the outcome of next week’s US election and the duration during which Gary Gensler will remain president of SECONDE.
VanEck and 21Shares filed their respective applications to launch a Solana spot ETF in June. Both companies also offer Bitcoin and Ethereum ETFs in the United States.
Edited by Andrew Hayward
Editor’s note: This story was updated after publication to add comment from Canary Capital.
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