Turning point? Grayscale applies to convert Solana Trust into a spot ETF

Grayscale Investments has filed an application with the U.S. Securities and Exchange Commission (SEC) to convert its Grayscale Solana Trust into an ETF , taking another step toward expanding its influence in the digital asset market.

If approved, the ETF would trade on the New York Stock Exchange under the ticker symbol GSOL, offering investors the opportunity to directly invest in Solana (SOL), one of the fastest-growing blockchain platforms in the Crypto ecosystem.

The filing, in the form of a 19b-4 application, marks the continuation of Grayscale’s push to transform its existing crypto asset trust into a fully regulated ETF .

This has already been achieved with the company’s flagship BTC and ETH investment products, which now trade as spot ETFs after receiving SEC approval earlier this year.

According to the filing, the Grayscale Solana Trust is currently the world’s largest Solana investment fund, with approximately $134.2 million in assets under management as of the filing date.

So far, the news has caused SOL to surge nearly 7% to $238, before a slight correction to $234.

Grayscale’s move comes as asset managers race to launch the first spot Solana ETF .

Other players including 21Shares, Canary Capital, VanEck and Bitwise have filed similar applications, signaling a race for regulatory approval.

The growing interest in Solana reflects its growing prominence in the crypto asset space, fueled by its rapid adoption and innovative technology.

Solana has surged 275% in value over the past year, driven largely by its appeal as a scalable and cost-effective alternative to Ethereum .

Solana’s current market capitalization exceeds $110 billion, making it one of the largest Crypto assets by market capitalization.

This meteoric rise in momentum has increased demand for investment products related to Solana, making the ETF an easy entry point for both institutional and retail investors.

Despite the market enthusiasm, the U.S. Securities and Exchange Commission has not approved any spot ETFs pegged to Solana or similar tokens .

The agency’s cautious approach to Crypto ETFs, especially spot products, stems from concerns about market manipulation, liquidity, and investor protection.

Still, Grayscale and other issuers are optimistic that the SEC will eventually give the green light to these products , given the growing maturity of the crypto asset market and regulatory advancements, particularly under the incoming Trump administration.

Grayscale positioned its application as part of a broader effort to expand the use of digital assets through traditional financial products.

In an accompanying statement, the company highlighted the ETF’s potential to bridge the gap between “institutional-grade investment opportunities” and “individual investors seeking exposure to emerging technologies like blockchain.”