Asset manager 21Shares has made significant strides in the cryptocurrency market by announcing its filing with the SEC to create an exchange-traded fund (ETF) dedicated to the Solana cryptocurrency. This new fund, known as the 21Shares Core Solana ETF, aims to track the notional value of SOL trades on major cryptocurrency exchanges on a daily basis.
To ensure the security and reliability of the ETF, Coinbase Custody Trust Company has been selected as the custodian. This is an important consideration for investors who value the integrity of their investments. It is worth noting that this is the second filing for a Solana ETF this week, highlighting the growing interest in this cryptocurrency within the asset sector.
VanEck, another well-known asset manager, also recently submitted a similar request to the SEC, seeking to launch its own Solana ETF in cash. The approval of a Solana ETF in the future is uncertain and may be influenced by significant political changes in the US. According to Eric Balchunas, a senior ETF analyst at Bloomberg, the likelihood of a Solana ETF being approved within the next 12 months is closely tied to the chances of a change in POTUS (President of the United States). He suggests that both possibilities are higher today than they were yesterday, although it is still too early to make accurate predictions.
In a recent development, the SEC has discontinued its investigation into Ethereum 2.0, which has been interpreted by Consensys, an Ethereum software company, as a sign that the agency now considers Ethereum a commodity. This could potentially pave the way for Solana to follow suit, especially after the recent approval of a spot Ether ETF.
These developments indicate a promising future for the classification and acceptance of Solana and other cryptocurrencies as legitimate commodities. This sets the stage for future regulations and investment opportunities. Both beginner and experienced investors are closely monitoring SEC decisions and their impact on the market.
As of now, the price of Solana stands at US$141.07, experiencing a 4% drop in the last 24 hours.
Disclaimer: The views and opinions expressed in this article, by the author or anyone mentioned, are for informational purposes only and should not be considered as financial or investment advice. Investing or trading cryptocurrencies carries a risk of financial loss.
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