21Shares recently made headlines by announcing its plans to launch SOL ETFs in the US. The company filed an S-1 application with the US Securities and Exchange Commission (SEC) to issue spot SOL ETFs, making it the second asset management firm to seek approval for a product backed by Solana’s native asset. VanEck was the first to apply for ETF issuance on June 27.
The interest in SOL ETFs has been growing, especially after 3iQ filed to issue the product in Canada last week. Now, more asset managers in the US are following suit, with expectations of additional applications in the near future. 21Shares is already known for offering approved BTC ETFs in the US in partnership with ARK Invest, known as the ARK 21Shares Bitcoin ETF (ARKB). They also have plans to introduce future BTC and ETH ETFs in collaboration with ARK.
However, 21Shares is now looking to take a different approach by offering its ETFs independently. They plan to offer their ETH ETF separate from ARK, despite initially applying for it together. Additionally, they will also launch their SOL ETFs, named the 21Shares Core Solana ETF, if approved.
To ensure the security of the SOL backing the products, 21Shares will use Coinbase Custody, a trusted cryptocurrency custodian. The SOL assets will be stored in segregated wallets based on the Solana blockchain, with Coinbase’s private custody insurance providing coverage for the stored assets. It is important to note that the SOL will be held in custody and will not be used for staking or other profit-generating activities.
The news of 21Shares’ application filing had an immediate impact on SOL’s price, causing it to spike from $139 to $150. A similar price surge occurred when VanEck also applied for SOL ETFs. While the approval of these ETFs by the SEC is uncertain, analysts believe that a change in administration could pave the way for their rollout in 2022. With President Trump showing a strong interest in advancing the crypto industry, the possibility of SOL ETFs becoming a reality in the near future is not far-fetched.
