- Canary Capital has filed for a Solana ETF, marking its third crypto ETF application this month.
- Solana’s strong transaction efficiency and stablecoin growth strengthen its appeal in DeFi. The
- SEC’s 2023 classification of Solana as a security raises regulatory challenges for the ETF.
Canary Capital has submitted an application to the U.S. Securities and Exchange Commission (SEC) for a Solana ETF, marking its third crypto ETF application within the past month. The application follows previous filings for a Litecoin ETF and an XRP Ripple ETF, along with the current launch of an HBAR Trust.
🚨NEW: @CanaryFunds has filed with the @SECGov for a $SOL ETF, making it the firm's third crypto ETF application this month.
Canary has now filed for a $SOL ETF, a $LTC ETF, an $XRP ETF and launched an $HBAR Trust. @stevenmcclurg has been putting in the overtime over there. https://t.co/dR8LIm1PCX
— Eleanor Terrett (@EleanorTerrett) October 30, 2024
James Seyffart, who has closely followed these filings, notes that Canary has not yet launched a live ETF, despite a series of applications in past months. This filing indicates a continued focus on building digital asset-based financial products that could soon provide investors with a regulated path to access Solana’s native assets.
Solana’s DeFi Growth and Industry Position
Steven McClurg, a representative of Canary Capital, described Solana as a “battle-tested frontrunner” within the competitive Layer 1 and Ethereum Virtual Machine (EVM) space, stating that Solana’s performance in transaction volume and cost efficiency sets it ahead of other blockchain projects.
Here's the official quote from @CanaryFunds:
“Despite the hyper competitive L1 and EVM landscape, Solana has emerged as a battle-tested frontrunner for decentralized applications. Solana's robust DeFi ecosystem has led to strong sustained on-chain analytics as measured by…— James Seyffart (@JSeyff) October 30, 2024
McClurg added that the continued development of native on-chain stablecoin deployment could strengthen Solana’s position as a leader in decentralized finance. As more assets and transactions occur directly on Solana’s blockchain, demand for native stablecoins and the overall utility of the network are expected to rise.
Canary Capital’ filing follows a similar Solana ETF application by asset manager VanEck in June, where VanEck highlighted SOL’s similarities to other digital commodities like Bitcoin and Ether. However, in its 2023 case against Binance, the SEC classified Solana as a security, raising regulatory doubt about potential SOL-based ETFs.
Potential Market Impact and Regulatory Factors
If approved, the Solana ETF could provide major benefits for institutional and retail investors by allowing exposure to SOL without directly purchasing or handling crypto assets.
An ETF for Solana would be available through traditional investment platforms, expanding market reach and boosting trading volume.
Bloomberg’s Senior ETF Analyst Eric Balchunas noted potential policy changes, suggesting that the Trump administration might favor a more crypto-friendly SEC chair, while a Harris administration would likely maintain current policies.
Related:
Solana ETF Filing News: VanEck and 21Shares Submit Applications to SEC
XRP, Solana ETFs: US Elections Fuel Speculative ‘Trump Call
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Source: https://coinedition.com/canary-capital-applies-for-solana-etf-challenging-sec-stance/