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

The approval of the U.S. Securities and Exchange Commission (SEC) for the Spot Solana Exchange-Traded Fund (ETF) seems to be nearing its conclusion. The initial seven potential issuers recently submitted revised S-1 filings, while a new competitor has also joined the race.

It is worth noting that each document contains information related to staking, which was added at the request of the SEC.

As the cryptocurrency industry prepares for the potential approval of a third cryptocurrency ETF by the SEC, here are the eight companies that have applied to issue a Solana ETF, listed in the order of their initial application submission:

VanEck

VanEck is the first company to apply for a Solana ETF, having submitted the application about a year ago. At that time, although the SEC insisted that Solana is a security, some compared this application to a call option on Trump winning the election.

This bet paid off, but if the SEC follows precedent and approves Bitcoin and Ethereum ETFs simultaneously, rather than in the order of applications, then this could be a pyrrhic victory.

To this end, VanEck has been advocating for the SEC to adopt a "first apply" principle, believing that this is more conducive to innovation and competition.

VanEck utilizes third parties to provide Solana staking services for its European Exchange-Traded Products (ETP).

21Shares

21Shares submitted a Solana ETF application two days after VanEck, also hoping that the SEC will adopt a "first application" principle.

The 21Shares planned Core Solana ETF will be traded on the Cboe BZX exchange, with redemptions being made in the form of SOL tokens.

A certain cryptocurrency exchange platform is listed as a staking service provider mentioned in the base prospectus submitted by 21Shares in Europe.

Canary Capital

Canary Capital submitted an application for a SOL ETF a few days before the US election.

Compared to some funds on the list, Canary Capital is smaller in size, but it has recently gained fame for applying for various altcoin ETFs. Its submitted ETF applications include SUI, SEI, INJ, TRX, PENGU, HBAR, LTC, and XRP.

Bitwise

Bitwise applied for its ETF for the first time shortly after Trump's election. 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 a third party. If the U.S. approves a staking ETF, it could be a good sign for related service providers.

Grayscale

Grayscale is seeking to convert its SOL trust into a Spot ETF, similar to the handling of its Bitcoin and Ethereum trusts. Currently, the trading price of the GSOL trust is higher than its net asset value, which means 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" on the 19b-4 application for the proposed Spot SOL ETF.

Franklin Templeton

Franklin Templeton Investments offers Bitcoin and Ethereum ETFs and has submitted ETF application documents for SOL and XRP.

This fund, with a scale of $1.5 trillion, has also invested in many other cryptocurrency projects, and its crypto separately managed account (SMA) has 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 asset management scale is second only to a certain large asset management company, while its Ethereum ETF's asset management scale lags behind that company and Grayscale's conversion trust.

Fidelity is a major provider of brokerage, trust, and individual retirement accounts, and it could become a primary driver of fund inflows for the approved SOL ETF.

CoinShares

CoinShares is the latest company to join the Solana ETF competition, joining the fray as existing issuers rush to submit their amended S-1 forms.

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

As these companies' applications enter the final stage, market expectations for the Solana ETF are also heating up. However, the final approval outcome still awaits the SEC's decision, and investors and industry participants are closely monitoring this development.