Solana Spot ETF application enters a critical stage, with eight companies competing for the market

The approval process for the Spot Solana Exchange Traded Fund (ETF) seems to have entered its final stage. Currently, a total of eight potential issuers have submitted applications, of which seven have recently submitted revised S-1 filings in the past few days, along with one new entrant.

It is worth noting that each document contains information about staking, which was added at the request of the U.S. Securities and Exchange Commission (SEC).

As the cryptocurrency industry prepares for the potential approval of a third cryptocurrency asset ETF by the SEC, here are eight companies that have applied to issue a Solana ETF and their relevant information:

VanEck

VanEck was the first to apply for a Solana ETF about a year ago. Although the SEC considered Solana a security at the time, some have compared this application to a bet on a specific political event.

VanEck has consistently advocated for the SEC to adopt a "first apply" principle, believing that it is more beneficial for innovation and competition. The company utilizes Kiln to provide Solana staking services for its European Exchange-Traded Products (ETP).

21Shares

21Shares has submitted a Solana ETF application following VanEck, also hoping that the SEC will adopt a "first-come, first-served" principle.

The Core Solana ETF planned by 21Shares will trade on the Cboe BZX exchange, with redemptions being made in SOL tokens. Its European base prospectus mentioned a trading platform as the staking service provider.

Canary Capital

Canary Capital submitted an application for the SOL ETF a few days before the U.S. elections.

Compared to some other funds, Canary Capital is smaller in scale but has recently attracted attention due to its applications for various altcoin ETFs. Its submitted ETF applications include SUI, SEI, INJ, TRX, PENGU, HBAR, LTC, and XRP.

Bitwise

Bitwise filed for an exchange-traded fund (ETF) shortly after a specific political event. The company's CEO, Hunter Horsley, described Solana as an "incredible emerging asset and story."

Bitwise also launched a Solana-based staking ETP in December, with staking services provided by Marinade. If the U.S. approves a staking ETF, it could be a positive sign for Marinade.

Grayscale

Grayscale is seeking to convert its SOL trust into a Spot ETF, similar to the way it has handled its Bitcoin and Ethereum trusts. Currently, the trading price of the GSOL trust is higher than its net asset value, which means that investors are willing to pay a price above the underlying SOL for this product.

Last month, the SEC postponed its decision on Grayscale's ETF, stating that it has not yet "reached any conclusions" regarding the 19b-4 application for the proposed Spot SOL ETF.

Franklin Templeton

Franklin Templeton Investment Company offers exchange-traded funds (ETFs) for Bitcoin and Ether, and has submitted application documents for ETFs related to Solana and XRP.

This $1.5 trillion fund has also invested in many other cryptocurrency projects, and its crypto separately managed accounts (SMA) have a small allocation to SOL. Its tokenized money market fund also received support from Solana earlier this year.

Fidelity

In the current competition, Fidelity is a giant. Its Bitcoin ETF's assets under management are second only to a large asset management company, while its Ethereum ETF's assets under management lag behind that company and Grayscale's conversion trust.

As a major provider of brokerage, trust, and individual retirement accounts, Fidelity may become a key driver of inflows into the approved SOL ETF.

CoinShares

CoinShares is the latest company to join the Solana ETF competition, joining the race as existing issuers compete to submit revised S-1 forms.

This Europe-based asset management company focused on cryptocurrency has launched exchange-traded products (ETPs) targeting BTC, ETH, and a range of altcoins.