Grayscale Joins Solana ETF Race, Files to Convert $120M Trust to GSOL Amid SEC Rejections

Dec 6, 2024, 12:58 AM

Grayscale Investments has filed with the U.S. Securities and Exchange Commission (SEC) to convert its Solana Trust into a spot Solana exchange-traded fund (ETF) under the ticker GSOL. The move positions Grayscale as the fifth firm to enter the race for a Solana ETF, joining asset managers such as 21Shares and Bitwise. Grayscale's Solana Trust currently holds $120 million in assets, making it the largest holder of Solana among existing funds. Despite growing interest from asset managers, reports indicate that the SEC has notified at least two of the five prospective issuers that their filings for spot Solana ETFs will be rejected. According to Fox Business reporter Eleanor Terrett, the consensus is that the SEC may not entertain any new crypto ETFs under the current administration. The SEC has expressed concerns that Solana, also known as SOL, could be classified as a security, complicating the approval process for these ETFs.