The New York Stock Exchange has filed an application with the SEC to create an ETF based on Grayscale’s Solana Trust. This filing joins a series of other recent ETF applications for Solana and XRP.
While Bitcoin Dominance has been declining over the past month, the crypto community has been predicting an altcoin season, and SEC approval of these ETFs could greatly enhance the bullish trend.
Grayscale’s Solana ETF
With filing hey, Grayscale wants to convert the SOL mutual fund into a Solana ETF, much like the company did with its first Bitcoin ETF. Grayscale now joins at least four other companies that filed for a Solana ETF with the SEC in October January. These companies include VanEck, 21Shares, Bitwise and Canary Capital.
“The Sponsor (Grayscale) therefore believes that permitting the listing and trading of the Fund’s shares on an exchange as an ETP (i.e., converting the Fund into a spot SOL ETP) will provide other investment in a safe and secure manner to invest in SOL on a regulated national securities exchange,” the text of the application said.
At the end of October, the SEC quietly began negotiations on the SOL ETF, and these discussions appeared to be progressing. If approved, Solana will become the third cryptocurrency to reach institutional investment in the US, after Bitcoin and Ethereum. Solana’s price reacted positively to the news, as SOL increased nearly 5% on the day.
If the SEC approves this ETF product, it will usher in a new milestone in regulatory approval. VanEck and 21Shares filed for their own Solana ETF shortly after these rumors, and Grayscale is now also in the race. Since filing, Solana’s price has skyrocketed.
However, Solana is not the only altcoin with ETF prospects. There are four asset management companies that have filed for an XRP ETF with the SEC. Most recently, WisdomTree filed for an XRP ETF, naming Coinbase as the custodian for the fund.
Overall, the cryptocurrency industry is expecting a friendlier regulatory regime to emerge in the US under Donald Trump’s second term. Today, according to information, Trump proposed the position of SEC Chairman to an industry ally, signaling beneficial policies in the future. In other words, ETF issuers expect the SEC to likely approve many new ETF products next year.
If institutional investments follow the same trend as Bitcoin ETFs, these approvals could create a strong bull market for altcoins. Several experts have warned of a new altcoin season, with Changpeng “CZ” Zhao hinting at it today. Approval of new ETFs for multiple altcoins from the SEC could greatly enhance these current trends.