21Shares Applies for Spot Solana ETF
The issuer's SEC filing followed by a day VanEck's proposal for a similar product.
21Shares has become the second major fund issuer to submit an application with the Securities and Exchange Commission for a U.S.-based ETF based on the spot price of Solana, the world's fifth largest cryptocurrency by market value.
The company's proposal for the 21Shares Core Solana ETF Friday followed a day after VanEck filed for a similar product.
In an email shared with etf.com, Andrew Jacobson, 21Shares head of legal, said the company was "excited for an ETF in the US that provides access to the Solana ecosystem."
"We believe this is a necessary step for the crypto industry and it holds true to our mission to bring to market easily accessible financial products centered around crypto assets," Jacobson said.
The 21Shares and VanEck applications provide the latest evidence of financial services firms' efforts to address growing market demand for crypto-focused investments. 21Shares said the fund would trade on the Cboe BZX Exchange as does its ARK 21Shares Bitcoin ETF (ARKB), which is based on the spot price of bitcoin. It did not specify a fee on the Solana fund.
Read More: VanEck Files For First U.S. Solana-Based ETF
Solana, the token of the smart contracts Solana blockchain, was recently trading at about $148, up more than 16% over the past week, according to crypto markets data provider CoinMarketCap.
ARKB's Soaring Inflows
ARKB, which charges a 0.21% fee, has generated more than $2.4 billion in inflows, according to U.K.-based asset manager Farside Investors. That total is the third most among 11 new products that received regulatory approval earlier this year and track bitcoin, the largest cryptocurrency by market capitalization.
21Shares is currently among nine issuers awaiting the SEC to rule on its application for a spot Ethereum ETF based on the price of ether, the second largest crypto by market value.
It already offers a product on European exchanges that follows Solana's performance while capturing staking yields that it reinvests in the fund. That 21Shares Solana Staking ETP has $811.1 million in assets under management, according to its website. The crypto-focused firm also has funds tracking the tokens of other major cryptocurrencies, including Cardano and Polkadot.
The filing comes less than two weeks after the firm named Frederico Brokate as its new U.S. business head. Brokate joined the firm after leading BlackRock's go-to-market strategy for the BlackRock Bitcoin Trust (IBIT). That fund has received more than $17.6 billion in inflows, the most among spot bitcoin funds.
Jacobson said that the firm looked "forward to expanding access to crypto as an asset class and view the ETF wrapper as one way to do that."
