Grayscale Targets Solana ETF Launch, Staking Rewards Excluded

Grayscale has taken a significant step by filing an S-1 form with the U.S. Securities and Exchange Commission (SEC) to transition its Solana Trust into an exchange-traded fund (ETF).

One notable aspect of this proposed ETF is that it will exclude Solana staking, a decision that sets it apart from direct token holdings.

The filing indicates that Grayscale plans to list the ETF, initially known as Grayscale Solana Trust (SOL), on the NYSE Arca exchange. If the SEC gives the green light, the fund will be renamed the Grayscale Solana Trust ETF. The ETF will primarily hold SOL tokens and track their value through the CoinDesk Solana Price Index (SLX). Coinbase is set to take on the role of prime broker and custodian, while the Bank of New York Mellon will handle administrative tasks as the transfer agent.

This move comes on the heels of a similar initiative by Fidelity earlier in the year, reflecting a growing interest in investment products centered around Solana. However, unlike directly holding SOL, this ETF will not involve staking, meaning investors won’t receive staking rewards. Although some may view this as a disadvantage, it simplifies the regulatory process, potentially increasing the ETF’s chances of approval.

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Investor sentiment around the Solana ETF has been optimistic. According to the prediction platform Polymarket, there’s currently an 83% likelihood that the SEC will approve the fund in 2025. This positive outlook stems from a more crypto-friendly stance among regulators following changes in U.S. leadership.

Meanwhile, Solana itself has been performing well, with the token trading around $116, marking a 2% increase in the last 24 hours. The network’s market cap has reached nearly $59.6 billion, and trading volumes have surged from $5 billion in January to $12.6 billion by March 2025. As the SEC’s decision approaches, market watchers are eager to see how this potential ETF could influence Solana’s trajectory in the crypto space.

Alexander Stefanov