Solana spot ETFs attract attention, 21Shares joins the race

21Shares becomes the latest institution to file for a spot Solana exchange-traded fund.

🚨 BREAKING BIG: ARK @21Shares officially files for @solana spot ETF. pic.twitter.com/bUqvB7YN3T

— SolanaFloor (@SolanaFloor) June 28, 2024

The move comes after asset manager VanEck made a similar application on Thursday.

The 21Shares Core Solana exchange-traded fund will track Solana performance and aims to offer investors a cost-friendly and straightforward exposure to SOL.

That will allow 21Shares clients to invest in Solana directly without having to hold the token.

Enthusiasts will trade the ETH on exchange Cboe BZX if approved.

21Shares’ primary goal with the ETF product is to replicate native SOL’s performance after considering liabilities and expenses related to the fund.

The regulated custodian Coinbase Custody Trust Company will hold the Solana assets.

Further, the ETF will not invest in derivatives but focus on ensuring the Solana holdings match the company shares’ value.

Meanwhile, crypto players await the United States SEC to approve multiple Ethereum exchange-traded funds by next week.

JUST IN: Spot #Ethereum ETFs Expected to Launch by July 4.

Analysts expect $15 billion in inflows in 18 months.

— Bitinning (@bitinning) June 27, 2024

Solana’s current price action

Despite the ETF optimism, SOL price mimicked broad market trends.

Bears dominate the crypto industry as the market cap of all digital assets plunged 1.55% in the past day to $2.26 trillion.

Solana dropped more than 3% on its daily chart to hover above $142 at press time.

Nvertheless, market experts remain confident about Solana’s recovery.

For example, GSR Markets forecasts an explosive move for SOL prices – driven by ETFs approval.

🚨 LATEST: @GSR_io's report suggests that a spot @Solana ETF could potentially increase the price of $SOL by up to 8.9x or more. pic.twitter.com/zubO90Esnd

— SolanaFloor (@SolanaFloor) June 27, 2024

Solana will likely capitalize on the endorsement by leading financial giants for stability and credibility in the crypto space.

In conclusion, 21Shares’ Solana ETF filing a day after VanEck’s application marks a crucial milestone in the world for crypto investments.

The products will expose Solana to a massive audience and potential investors.

While the markets await more altcoin ETFs, Solana spearheading the charge positions SOL for remarkable success in the sector.

Enthusiasts will likely watch Solana’s performance amidst the ETFs and whether the alt could hit GRS’s target past the $1K mark.

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