21Shares files new Solana ETF application with SEC

Solana Crypto 1

IMPORTANT POINTS:

  • 21Shares filed for a Solana ETF with the SEC on June 28.
  • Coinbase will be the custodian of the fund’s SOL holdings.
  • The fund will not participate in Solana staking.

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21Shares filed an S-1 application with the U.S. Securities and Exchange Commission for a Solana (SOL) exchange-traded fund (ETF ) on June 28.

The fund will be called the 21Shares Core Solana ETF. This is the second application the SEC has received for a SOL ETF, following VanEck’s filing on June 27.

The proposed ETF will be traded on the Cboe BZX Exchange. Coinbase will be the custodian of the fund’s Solana holdings, which will be privately insured.

The fund will not participate in the validation or staking of SOL. The value of SOL in the fund will be determined daily at 4:00 ET.

21Shares is a cryptocurrency-native fintech company based in Zurich, Switzerland. It already offers Ether (ETH) futures and Bitcoin (BTC) ETFs in the United States.

SOL price quickly rose from $139 to $150 on the news of VanEck’s filing. It stabilized at $141.58 as of 12:00 p.m. ET, according to CoinMarketCap.

Solana ETF Proposal by 21shares

The 21Shares Core Solana ETF aims to provide investors with direct exposure to Solana’s performance. Unlike other funds, this ETF will not be involved in validating or staking the cryptocurrencies it holds. This ensures that SOL holdings are available to the exchange at any time, offering immediate liquidity to investors.

Coinbase, known for its robust security infrastructure and expertise in digital asset custody, will serve as custodian for the fund’s SOL holdings.

Custody will be privately secured, providing an additional layer of security for investors. The choice of Coinbase as custodian reflects confidence in its capabilities to securely manage large volumes of cryptocurrency.

Antecedents of 21shares

21Shares is known for pioneering the creation of cryptocurrency-based financial products. Headquartered in Zurich, Switzerland, the company already offers a range of cryptocurrency ETFs in the United States, including Ether and Bitcoin futures.

The expansion to include Solana in its offering demonstrates 21Shares’ commitment to diversifying its products and its commitment to the growth of the cryptocurrency market.