**Grayscale’s Move to Convert Solana Trust into ETF Faces SEC Review**
Grayscale Investments has filed for regulatory approval to transform its Solana Trust into an exchange-traded fund (ETF) on NYSE Arca. This move aims to provide investors with a regulated, liquid way to gain exposure to Solana without directly handling the asset. However, the transition hinges on approval from the U.S. Securities and Exchange Commission (SEC), which has yet to greenlight the necessary 19b-4 form, submitted by NYSE Arca on December 3, 2024. This form is required under the Securities Exchange Act of 1934 for listing new products like the proposed Solana ETF.
This strategic shift is part of Grayscale’s broader effort to adapt to evolving market trends, following its earlier conversion of the Bitcoin Trust into an ETF in 2024. Approval of the Solana ETF could change how U.S. investors access Solana.
Meanwhile, Solana’s price recently dropped 8% to $115 due to macroeconomic factors like new tariffs announced by former U.S. President Donald Trump. This move has affected the broader crypto market, with Bitcoin and Ethereum also experiencing significant declines. Despite this volatility, institutional interest remains strong, highlighted by ongoing initiatives such as Fidelity’s ETF filing, which fuels long-term optimism for Solana’s market potential.
