Grayscale Investments is preparing to transform its Solana Trust into a fully regulated exchange-traded fund (ETF), positioning itself to capture institutional demand for Solana exposure. According to its latest SEC filing, the trust soon to be renamed Grayscale Solana Trust ETF aims to list its shares on NYSE Arca under the ticker “GSOL.”
This move reflects the company’s long-term strategy to convert its digital asset products into ETFs once regulatory conditions allow. Currently, GSOL trades on OTCQX, but listing on a national exchange would enhance liquidity and investor access.
Grayscale Moves to Convert Solana Trust Into ETF
The Delaware-based trust issues shares representing fractional beneficial ownership in its underlying Solana (SOL) holdings. Its goal is to mirror Solana’s market price, minus fees and liabilities. Each basket consists of 10,000 shares, created or redeemed by authorized participants.
Fund operations currently depend on cash creations and redemptions, though Grayscale may transition to in-kind transactions once NYSE Arca secures approval. This adjustment would align GSOL with the structure already used by approved Bitcoin and Ethereum ETFs.
The trust lists several key service providers. Coinbase Custody acts as the main custodian, Anchorage Digital Bank serves as an additional custodian, and The Bank of New York Mellon functions as the transfer agent and administrator. Davis Polk & Wardwell provides tax counsel, while Foreside Fund Services handles marketing operations.
Staking Activation and Fee Structure
Significantly, Grayscale recently enabled Solana staking within the trust, offering investors exposure to staking rewards through traditional brokerage accounts. The feature introduces new opportunities for yield generation but also adds technical risks. The filing warns that validators could face losses or reduced incentives, potentially affecting network stability.
The ETF will charge a 0.35% sponsor fee, payable in SOL, with no current plan for a waiver. The trust clarified that fee adjustments could occur in future updates depending on market competition and operational costs.
Rising Competition From Bitwise
As reported by Coinpaper, Bitwise Asset Management has advanced its own Solana ETF proposal, emphasizing staking and cost efficiency. Its latest amendment to the SEC includes a reduced management fee of 0.20% among the lowest in the market and a temporary fee waiver until its first $1 billion in assets. Bloomberg analysts James Seyffart and Eric Balchunas noted that such pricing signals aggressive competition for early investor inflows.
Analysts Watch $217 as Key Solana Support
Source: X
At the time of writing, Solana trades near $221, down 2.9% in 24 hours, with a key support level at $217. Market analyst Ali Martinez emphasized that this level will determine Solana’s short-term trajectory, as a rebound could trigger a “W-shaped” recovery toward $226 and $236. A breakdown below $217, however, may lead to deeper corrections near $212.
Source: https://coinpaper.com/11519/grayscale-files-solana-etf-with-0-35-fee-eyes-nyse-arca-listing
