Emre Yumlu 
Grayscale has filed for a Solana ETF to trade on NYSE Arca. How will the SEC’s changing stance affect ETFs?
Grayscale’s Solana ETF Application
As Solana’s price has fallen to 13-month lows, Grayscale’s application to convert its Solana Trust into an ETF has rekindled interest in the market. The move is seen as part of a strategy to expand investor access amid rising crypto adoption.
The Regulatory Process and Grayscale’s Strategy
Grayscale has taken its 19b-4 application, which it filed last December, a step forward by filing for a Solana ETF to trade on NYSE Arca. The SEC’s changing stance raises expectations that it could follow suit for Solana, following the approval of Bitcoin and Ethereum ETFs.
A notable detail, Grayscale’s application states that SOL tokens will not be staking. This approach is considered a compliance strategy that takes into account the SEC’s regulatory sensitivities towards proof-of-stake systems.
Solana Price and Market Reaction
Grayscale’s ETF application comes at a time when Solana’s price has fallen to 13-month lows. SOL is trading around $114.50, while market volatility is driven by geopolitical risks and economic uncertainty in the US.
The fate of Solana’s ETF application depends on the SEC’s decision. Given that giants like Fidelity have filed similar applications, regulatory developments will be one of the key factors that will determine the future of the altcoin market. Analysts predict that if Grayscale wins approval, Solana could attract more institutional investor interest.
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