SEC approves Solana Spot ETF to enter final stage, eight issuers compete for the market

The approval process by the U.S. Securities and Exchange Commission ( SEC ) for the Spot Solana Exchange-Traded Fund ( ETF ) seems to be entering its final stage. Recently, seven existing applicants submitted revised S-1 documents, while a new participant has also joined the competition.

It is worth noting that each application document contains information related to staking, which is exactly what the SEC previously required issuers to include.

As the crypto industry prepares for a potential SEC-approved third cryptocurrency asset ETF, here are the eight companies that have applied for the issuance of a Solana ETF, listed in the order of their initial application submission:

VanEck

VanEck is the first company to apply for a Solana ETF, having submitted the application about a year ago. At that time, although the SEC insisted that Solana is a security, some viewed this application as a bullish option on Trump winning the election in November.

VanEck has consistently argued that the SEC should adopt a "first apply" principle, believing it would better promote innovation and competition. The company utilizes Kiln to provide Solana staking services for its European exchange-traded product (ETP).

21Shares

21Shares submitted a Solana ETF application two days after VanEck, also hoping that the SEC will adopt a "first-come, first-served" principle.

21Shares plans to launch the Core Solana ETF on the Cboe BZX exchange, with redemptions occurring in SOL tokens.

Canary Capital

Canary Capital submitted an application for a SOL ETF a few days before the US election.

Compared to some larger funds, Canary Capital is relatively small, but it has recently attracted attention due to its applications for various emerging cryptocurrency ETFs. Its submitted ETF applications cover multiple emerging crypto assets.

Bitwise

Bitwise applied for an ETF shortly after Trump's election. The company's CEO, Hunter Horsley, described Solana as an "incredible emerging asset and story" in an interview.

Bitwise launched a Solana-based staking ETP in December, with staking services provided by Marinade. If the U.S. approves a staking ETF, this could be a positive signal for Marinade.

Grayscale

Grayscale is seeking to convert its SOL trust into a Spot ETF, similar to how it has handled its Bitcoin and Ethereum trusts. Currently, the trading price of the GSOL trust is above its net asset value, indicating that investors are willing to pay a price higher than the underlying SOL for this product.

Last month, the SEC delayed its decision on Grayscale's ETF, stating that it has not yet "reached any conclusion" on the 19b-4 application for the proposed Spot SOL ETF.

Franklin Templeton

Franklin Templeton Investments offers Bitcoin and Ethereum ETFs and has submitted ETF application documents for SOL and XRP.

This fund, which has a scale of $1.5 trillion, has also invested in many other cryptocurrency projects. Its crypto independent managed account (SMA) has a small allocation to SOL. Its tokenized money market fund also received support from Solana earlier this year.

Fidelity

In the current competition, Fidelity is a strong participant. Its Bitcoin ETF's asset management scale is second only to a well-known asset management company, while its Ethereum ETF's asset management scale lags behind that company and Grayscale's conversion trust.

As a major provider of brokerage, trust, and individual retirement accounts, Fidelity may become a significant driver of inflows into the approved SOL ETF.

CoinShares

CoinShares is the latest company to join the competition for Solana ETF, entering the race as existing issuers are competing to submit revised S-1 forms.

This European asset management company focused on cryptocurrency has launched exchange-traded products for BTC, ETH, and a range of emerging cryptocurrencies (ETP).