A few days after asset manager VanEck announced filing for a spot Solana Exchange-Traded Fund with the US Securities and Exchange Commission (SEC), 21Shares has revealed that it has also submitted a similar application to the SEC.
The spot Solana ETF, which will track SOL’s performance, intends to offer a cost-effective and convenient way for traditional investors to invest in Solana without holding the digital currency.
The Core Solana ETF
21Shares’ latest fund is known as Core Solana ETF. The asset manager has announced that it will trade on stock exchange Cboe BZX when the SEC approves it. In its ETF filling, 21Shares mentioned Coinbase Custody Trust as the custodian of the SOL tokens backing the ETF.
On the other hand, 21Shares US LLC, the company sponsoring the ETF, will manage the fund’s operations while ensuring that Core Solana Shares are valued on a daily basis using an index that reflects the performance of SOL in USD.
Money collected from selling ETF shares will be used to buy SOL from select crypto exchanges, which will be tasked with transferring the SOL tokens to Coinbase Custody Trust. The goal is to ensure that each share is backed by a SOL token, making it easy for investors to redeem their shares.
It is worth pointing out that the 21Shares’ ETF filing has a provision that if SOL is deemed as security in the future, the asset manager will not comply with any additional regulatory requirement. Instead, Core Solana ETF will be removed from the market. This provision highlights the growing regulatory uncertainty in the US crypto markets.
21Shares Vice President Comments on Latest ETF Application
Speaking after the ETF filing announcement, 21Shares Vice President Andrew Jacobson said he was excited about the possibility of issuing a Solana ETF in the United States to allow investors to explore the Solana ecosystem.
He added that 21Shares will continue to pursue its goal of bringing the crypto markets closer to traditional investors.
In other news, analysts anticipated that the Securities and Exchange Commission will allow spot Ethereum ETFs to start trading after the July 4th holiday.
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