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Grayscale has joined the Solana exchange-traded fund (ETF) race by applying to convert its Solana Trust (GSOL) into an ETF.
Last week, Bitwise became the fourth asset manager to submit its regulatory filings for the product. Canary Capital filed for its Solana ETF in October while VanEck and 21Shares filed theirs in June.
NYSE Arca, the exchange intending to list the ETF, has submitted the 19b-4 filing with the Securities and Exchange Commission (SEC), officially kick-starting Grayscale's application process.
The filings underscore the increasing institutional interest in Solana while Grayscale's conversion of its Solana Trust mirrors the company’s successful transitions of its flagship Bitcoin and Ethereum trusts into ETFs earlier this year.
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The Solana Trust, initially launched in 2021 as Grayscale’s 16th investment offering, now boasts $134 million in assets under management, according to the latest filing.
Solana has performed impressively over the year, rising 270% since January. Trump's election win further boosted the third-fifth largest cryptocurrency to its all-time high last week of $263.
Speaking to Blockworks, Bitwise CEO Hunter Horsley described SOL as "an incredible emerging asset and story," highlighting that Bitcoin ETF buyers might be looking for the "next big thing in crypto" and for a lot of investors" the answer is Solana.
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BRN analyst Valentin Fournier further explained that Solana memecoins have strengthened the blockchain's resilience.
"While we don't believe the frenzy can withstand a bear market, memecoin trading is nothing less than an online casino driven by a strong community feeling. This alone can sustain strong transaction levels, even if markets were to go down," he said. "Platforms like Pump.fun are booming, with record-breaking active addresses and a steadily growing user base."
