Two applications for Solana ETFs have now been filed with the SEC, both very quickly compared to the Bitcoin and Ethereum ETFs.
21Shares filed a spot Solana ETF application this week, with Coinbase as custodian and assets in separate Solana wallets.
Like Ethereum, the Solana ETF won't participate in staking and will focus only on holding Solana.
Solana network's issues, like outages and centralization, could hinder the ETF's success.
Solana's price surged after the ETF news but still faces resistance at $150.
At this point, it can be argued that the Solana spot ETF applications are moving faster than the Ether ETFs.
In the same way, the Ethereum Ethereum ETF applications moved faster than the Bitcoin ETFs.
The Ethereum ETFs have yet to hit the markets fully, but we already have two spot Solana ETFs.
In one of the most significant news events this week, 21Shares filed an S-1 application with the US Securities and Exchange Commission to launch a spot Solana ETF, much like the Bitcoin and Ethereum versions.
This proposed Solana ETF, which will be called the 21Shares Core Solana ETF, is the second Solana ETF application filed by 21Shares.
Interestingly, 21Shares’ ETF application comes only a day after VanEck’s filing on June 27, which says a lot about the ongoing rush for Solana ETFs.
Coinbase will be the custodian of 21 Shares’ Solana assets, and the 21Shares Core Solana ETF will trade on the Cboe BZX Exchange.
These assets will be kept in separate wallets on the Solana blockchain and will be privately insured.
Moreover, the fund will only concentrate on owning the asset and will not participate in verifying or staking. The daily value of the Solana ETFs will be determined at around 4:00 p.m. ET, and the intra-day value of shares will be calculated and updated every 15 seconds.
It is no surprise that 21 Shares is one of the first to apply for a spot Solana ETF, considering that it already offers a wide range of ETFs, including future Ether and its spot Bitcoin ETFs with Ark Invest.
However, there might be a few things to overcome with this ambitious Solana dream.
For instance, despite the potential of a spot Solana ETF to drive up prices, the Solana network itself has been under severe fire due to centralization concerns, frequent outages and crashes, and freeze-ups during network congestion.
These are some of the issues that the Solana Foundation and the Solana network need to work on before any possible Solana ETFs become attractive investment options.
Interestingly, the announcement from VanEck and 21 Shares’ filings pushed Solana into an almost immediate reaction.
During the week, the cryptocurrency surged to as high as $150 before declining to around $143 after the bears pushed it underneath the $142 price support.
Solana’s price action
The cryptocurrency is already showing signs of a recovery from here and should make another attempt to break above the $150 price level soon.
Investors can expect the consolidation between $150 and $121 to continue from here until a breakout occurs in either direction.
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