Another Solana ETF Follows VanEcks Lead in Applying for US Listing 21 Stocks in Tow

CoinTelegraph Report:
Following VanEck’s recent launch of its own spot Solana ETF, 21Shares has applied to the U.S. Securities and Exchange Commission (SEC) to launch the 21Shares Core Solana ETF.
According to the filing, the ETF aims to track the performance of Solana (SOL) and provide investors with a convenient and cost-effective way to gain exposure to SOL without investing directly.
If approved, the 21Shares Core Solana ETF will trade on the Cboe BZX Exchange. The ETF’s objective is to reflect the performance of Solana’s native token SOL and adjust accordingly based on the fund’s expenses and liabilities.
The SOL held by the ETF will be custodied by regulated third-party custodian Coinbase Custody Trust Company. The ETF will not directly invest in derivatives and is designed to maintain its holdings in SOL to match its stock value.
Sponsor 21Shares US LLC will oversee the operation of the trust and ensure that the ETF’s shares are valued daily based on an index reflecting the performance of SOL against the U.S. dollar.
Authorized participants can create and redeem shares by depositing cash with the trust. The cash is then used to purchase SOL from a designated third party, the SOL counterparty, who will handle the transaction and transfer the SOL to the trust’s custodian. This process ensures that the ETF’s shares accurately reflect the value of the SOL held.
The trust plans to redeem shares by transferring SOL to the counterparty, who will sell the SOL and deposit the cash proceeds back into the trust. This approach allows the trust to manage its assets efficiently while providing liquidity for investors.
The filing includes a provision that if Solana is determined to be a security and the ETF sponsor chooses not to comply with additional regulatory requirements, the trust will be terminated. This highlights the ongoing regulatory uncertainty in the cryptocurrency market.
Andrew Jacobson, Vice President and General Counsel of 21Shares, said in a prepared statement shared with Decrypt, “21Shares is excited about the potential to launch an ETF in the United States that can access the Solana ecosystem. We believe this is a necessary step for the cryptocurrency industry and aligns with our mission to bring easily accessible financial products centered around cryptocurrency assets to the market.”
The proposed launch of the 21Shares Core Solana ETF marks an important step in the growing trend of institutional involvement in the cryptocurrency industry. Following VanEck’s application, this ETF demonstrates increasing confidence among institutional investors in the potential of Solana.
It also reflects the broader trend of integrating digital assets into mainstream financial products, providing investors with more diversified portfolio management options.
Edited by Andrew Hayward.
Editor’s note: This report has been updated post-publication to include comments from 21Shares.