Turning point? Grayscale applies to convert Solana Trust into a spot ETF

Source: Blockchain Knight

Grayscale Investments has taken another step toward expanding its presence in the digital asset market by filing an application with the U.S. Securities and Exchange Commission (SEC) to convert its Grayscale Solana Trust into an ETF.

If approved, the ETF will trade on the New York Stock Exchange under the ticker GSOL, offering investors direct exposure to Solana (SOL), one of the fastest-growing blockchain platforms in the Crypto ecosystem.

The filing, in the form of a 19b-4 application, signals that Grayscale is continuing its push to convert its existing Crypto asset trusts into fully regulated ETFs.

This has already been achieved with the company’s flagship BTC and ETH investment products, which now trade as spot ETFs after receiving SEC approval earlier this year.

According to the filing, the Grayscale Solana Trust is currently the world’s largest Solana investment fund, managing approximately $134.2 million in assets as of the date of the filing.

The news has caused SOL to surge nearly 7% to $238 so far this year, before a slight pullback to $234.

Grayscale's move comes as asset managers race to launch the first spot Solana ETF.

Other players, including 21Shares, Canary Capital, VanEck and Bitwise, have already filed similar filings, signaling a race for regulatory approval.

The growing interest in Solana reflects its growing prominence in the crypto asset space, fueled by its rapid adoption and innovative technology.

Over the past year,Solana's value has surged 275%, driven by its appeal as a scalable and cost-effective alternative to Ethereum.

With a market cap of more than $110 billion, Solana is currently one of the largest crypto assets by market cap.

This meteoric rise in momentum has increased demand for investment products tied to Solana, making ETFs a convenient entry point for both institutional and retail investors.

Despite the enthusiasm, the SEC has yet to approve any spot ETFs tied to Solana or similar tokens.

The agency’s cautious approach to Crypto ETFs, especially spot products, stems from concerns about market manipulation, liquidity, and investor protection.

However, given the growing maturity of the Crypto asset market and regulatory advances, especially under the incoming Trump administration,Grayscale and other issuers are optimistic that the SEC will eventually give these products the green light.

Grayscale is positioning its application as part of a broader effort to expand the use of digital assets through traditional financial products.

In an accompanying statement, the company highlighted the ETF’s potential to bridge the gap between “institutional-grade investment opportunities” and “individual investors seeking exposure to emerging technologies like blockchain.”