Crypto asset management firm Grayscale converted Solana ETF (GSOL) to start trading on Wednesday.
However, its parent company Digital Currency Group (DCG) and related investment firm sold shares of Solana ETF before launch today.
NYSE Arca has also listed Grayscale Solana Trust ETF (GSOL) shares for trading on the exchange.
The conversion into Solana ETF went auto-effective with the latest filing the the U.S. Securities and Exchange Commission.
Grayscale Solana ETF (GSOL) Files 8-A and CERT with the US SEC
According to US SEC filing, the world’s largest digital asset-focused investment firm Grayscale Investments submitted Form 8-A12B and CERT.
It highlighted approval from NYSE Arca to list Grayscale Solana ETF (GSOL). Form 8-A12B filing makes the application auto-effective for conversion from Grayscale Solana Trust to Grayscale Solana ETF.
The happened in accordance with an earlier guidance letter from the US SEC’s Division of Corporate Finance.
In early October, Grayscale Solana Trust submitted an S-1 form to announce a 0.35% fee for the Solana ETF. It also updated the language and risk factors related to staking.
The GSOL already has over $102 million in AUM, accounting for 0.09% of SOL supply. Also, nearly 75% of Solana is staked.
The crypto community expects a maximum initial selling of $25 million, which will likely be sold over time, just like their staked SOL.
It becomes the second Solana ETF to launch this week, after the Bitwise Solana Staking ETF (BSOL).
DCG Selling Grayscale Solana ETF (GSOL)
Digital Currency Group (DCG) and DCG International Investments selling shares of Grayscale Solana ETF before the debut today, as per the SEC filings.
DCG sold 387 shares, with an aggregate market value $5,665.68. The approximate sale date was October 28, executed through Canaccord Genuity Corp.
The firm acquired the shares on October 19 last year in a privately negotiated transaction from the issuer for cash. The shares outstanding are 7,231,035.
Moreover, DCG International Investments sold 7,100 shares on October 27 and 6,723 on October 28 through Canaccord Genuity Corp.
SOL Price Slumps Over 3%
SOL price fell over 3% in the past 24 hours, with the price currently trading at $197. The 24-hour low and high were $191.39 and $202.89, respectively.
However, trading volume increased by nearly 25% in the last 24 hours, indicating massive buying amid the Bitwise Solana Staking ETF (BSOL) trading on NYSE Arca.
Bitwise’s Solana ETF saw $69.5 million in inflows on debut, a 480% higher than SSK. Bloomberg ETF analyst Eric Balchunas confirmed $56 million in trading volume on day one.
Meanwhile, CoinGlass data showed buying in the derivatives market in the last few hours. At the time of writing, the 4-hour total SOL futures open interest jumped nearly 0.50% to $10.52 billion.
Also, SOL futures OI on CME and Binance have climbed more than 6% and 5% in the last 24 hours, respectively.