A new digital asset manager has filed to launch the Spot Solana exchange-traded fund (ETF), joining a growing number of up-and-comers including established companies VanEck and 21Shares.
Canary Capital, which filed for XRP and Litecoin products with the Securities and Exchange Commission (SEC) this month, filed an S-1 filing for the proposed Canary Solana ETF on Wednesday.
ETFs are popular investment vehicles traded on stock exchanges. If the SEC approves the Canaria Solana ETF, investors will be able to gain exposure to the coin by purchasing stocks tied to the price of SOL without having to purchase and store cryptocurrencies.
SOL is the fifth largest digital asset. Its native blockchain is used for decentralized applications (dapps), decentralized finance (DeFi), meme coins, and more. It is considered a major rival to Ethereum, the network behind ETH, offering cheaper and faster transactions.
The coin currently has a market cap of $82 billion, and its current price is around $175, up 400% in the past year.
“Despite the highly competitive L1 and EVM landscape, Solana has emerged as a proven frontrunner in decentralized applications,” Canary said in a statement. “Solana’s robust DeFi ecosystem delivers high transaction rates, active addresses, and new addresses per day while maintaining a low-fee environment for all consumers. Future growth could also further accelerate the commanding lead Solana maintains over its competitors.”
Canary Capital is a Nashville, Tennessee-based company founded in September. It aims to provide financial institutions with cryptocurrency trading and management solutions.
The SEC approved the Bitcoin ETF in January and began trading the same month, while the Ethereum ETF was approved in May and began trading in July. However, after a decade of efforts to gain approval for Bitcoin funds, regulators appear reluctant to make such a move, with crypto companies accused of selling unregistered securities. are frequently exposed to lawsuits.
The SEC specifically asserted that it considered SOL to be an unregistered security. Analysts believe the Solana ETF will eventually be approved in the US following the recent approvals of the Bitcoin and Ethereum funds, but the speed of such a move could depend on next week’s US elections. That could depend on the outcome and how long Gary Gensler remains chairman. SEC.
VanEck and 21Shares each filed to launch a Spot Solana ETF in June. Both companies also offer Bitcoin and Ethereum ETFs in the United States.
Edited by Andrew Hayward
Editor’s note: This article was updated after publication to include comment from Canary Capital.
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