Solana ETF: traditional finance accelerates

The world of finance is closely watching Solana for its ETF: Six major managers have updated the documents to launch spot ETFs on the crypto asset, while the SEC seems ready to change its approach after the Biden era.

The big players of Wall Street update plans for ETFs on Solana: the era of digital assets beyond Bitcoin and Ethereum has begun

On July 4, 2024, six protagonists of global finance – Franklin Templeton, Fidelity, Grayscale, Bitwise, CoinShares, and VanEck – simultaneously updated their S-1 filings with the SEC, proposing spot ETFs with Solana as the underlying asset.

The update does not introduce substantial changes, but marks a key point in the dialogue with the regulator.

As highlighted by Nate Geraci, president of NovaDius Wealth, these revisions indicate a constant dialogue with the SEC and an approval process that is now mature. The regulatory environment is rapidly changing.

The new presidency of Paul Atkins, appointed by Donald Trump, has initiated the Project Crypto: an initiative to update the regulatory framework on digital assets and recognize that “most cryptocurrencies are not securities“.

This is a drastic change of course compared to the restrictive approach adopted under the leadership of Gary Gensler, and it opens the doors to a new generation of ETFs, no longer limited to only Bitcoin and Ethereum.

Among the most innovative proposals is that of Grayscale, which focuses on an ETF with an annual fee of 2.5%, payable directly in SOL.

This choice reflects an attempt to align the structure of the ETF with the philosophy of blockchain: transparent transactions, without intermediaries.

An important precedent, which could be followed by other managers intending to offer “natively crypto” financial instruments.

New wave of ETFs coming: XRP, DOGE

The SEC is examining other ETF proposals related to digital assets like XRP, at the center of the long legal battle with Ripple, and Dogecoin (DOGE), supported by the online community.

Furthermore, the limits for the use of options on crypto assets have been raised, a change that opens the door to advanced strategies even for institutional funds.

These signals indicate a historic phase of openness: after years of resistance, the SEC seems ready to normalize the entry of cryptocurrencies into regulated markets.

The approval of a spot ETF on Solana would represent a historic step, capable of expanding access to the asset and attracting new capital. But risks are not lacking:

• Volatility: Solana is still a young project, with an unstable track record.
• High fees: the 2.5% charged by Grayscale is above average.
• Increasing competition: Fidelity, VanEck, and others might respond with more advantageous offers.

The coming weeks will be decisive. The SEC is in the final evaluation phase, and the green light could arrive before the autumn, triggering a new market rally.

Conclusion: a new era for crypto ETFs is on the horizon

All attention is now on the official communications from the SEC. If the ETFs on Solana were to receive the green light, it would be a turning point for digital finance in the USA.

The operators are ready, the markets too. It remains to be seen whether politics and regulation will accompany the change or hinder it.

To not miss updates, follow us in the upcoming articles dedicated to the regulatory evolution of crypto ETFs. The future is already here.