In a significant development for the cryptocurrency investment landscape, 21Shares has filed with the United States Securities and Exchange Commission (SEC) to launch the 21Shares Core Solana ETF. This move follows closely on the heels of VanEck’s recent filing for a similar spot Solana ETF.
The proposed ETF seeks to mirror the performance of Solana (SOL), offering investors a convenient and affordable means to gain exposure to SOL without directly investing in the cryptocurrency. As stated in the filing, the 21Shares Core Solana ETF will be listed on the Cboe BZX Exchange, subject to approval.
Authorized participants can create and redeem shares by depositing cash with the trust. This cash is used to purchase SOL from designated third parties, known as SOL counterparties, who manage the transactions and transfer SOL to the trust’s custodian. This process ensures that the ETF’s shares accurately reflect the value of the SOL holdings.
The trust plans to redeem shares by transferring SOL to the counterparties, who will sell the SOL and deposit the cash proceeds back to the trust. This method allows the trust to efficiently manage its assets while providing liquidity to investors.
The filing includes provisions for the potential scenario where Solana might be classified as a security. If this determination occurs and the ETF sponsors choose not to comply with additional regulatory requirements, the trust will be terminated. This highlights the ongoing regulatory uncertainties within the cryptocurrency market.
The introduction of the 21Shares Core Solana ETF signifies growing institutional confidence in Solana’s potential and the broader movement towards integrating digital assets into mainstream financial products. This ETF, following VanEck’s filing, suggests a rising interest among institutional investors in diversified cryptocurrency investment options.