Canary Capital Files For Spot Solana ETF Amid Growing Interest

According to Decrypt, a new digital asset manager, Canary Capital, has filed to launch a spot Solana exchange-traded fund (ETF), joining other hopefuls such as VanEck and 21Shares. The filing was made to the Securities and Exchange Commission (SEC) on Wednesday. An ETF is a popular investment vehicle that trades on stock exchanges, allowing investors to buy shares that track the price of SOL, thereby gaining exposure to the coin without having to purchase and store cryptocurrency. SOL, the fifth-largest digital asset, is used for decentralized applications (dapps), decentralized finance (DeFi), meme coins, and more. It is considered a key rival to Ethereum, offering cheaper and faster transactions. The coin currently has a market cap of $82 billion and has seen a 400% increase in value over the past year, with a current price of about $175. Canary Capital, based in Nashville, Tennessee, launched in September and aims to provide institutions with crypto trading and management solutions. In January, the SEC approved Bitcoin ETFs, which started trading the same month, while Ethereum ETFs were approved in May and began trading in July. However, the regulator has been cautious, following 10 years of attempts to gain approvals for Bitcoin funds, and frequently hits crypto companies with lawsuits over allegations of selling unregistered securities. The SEC has specifically alleged that it considers SOL to be an unregistered security. Analysts believe that Solana ETFs will eventually be approved in the United States, following the recent approvals of Bitcoin and Ethereum funds. However, the speed of such a move could depend on the outcome of next week's U.S. elections and the tenure of Gary Gensler as Chairman of the SEC. VanEck and 21Shares filed their respective applications to launch a spot Solana ETF back in June. Both firms also offer Bitcoin and Ethereum ETFs in the United States.