21Shares submits application for SOL spot ETF

The ETF issuer 21Shares has submitted the S-1 form for the 21Shares Core Solana ETF to the U.S. Securities and Exchange Commission (SEC). This is the second issuer, following VanEck, to propose a SOL spot ETF.

21Shares Focuses on Crypto ETPs

21Shares is a Swiss company specializing in Exchange-Traded Products (ETPs) for cryptocurrencies. Founded in 2018, it is headquartered in Zurich.

21Shares has issued 40 crypto ETPs, listed on 13 exchanges, with assets under management totaling $3.2 billion excluding ARKB. Its most famous product is the Bitcoin spot ETF ARKB in collaboration with ARK Invest, currently with assets totaling $2.78 billion. The Ethereum spot ETF, originally applied for in conjunction with ARK Invest, reportedly saw ARK Invest withdraw due to low profitability, leading 21Shares to independently apply for and launch the 21Shares Core Ethereum ETF.

Is ARK Invest no longer collaborating with 21Shares on the Ethereum spot ETF due to low profitability?

21Shares offers a diverse range of crypto products, including over 30 cryptocurrencies such as ADA, ARB, AAVE, and BNB. Recently, it introduced a staking Exchange-Traded Product (ETP) called TONN, which is pegged to Toncoin, on the Swiss SIX exchange, rewarding investors with staking incentives.

21Shares Launches Staking ETP TONN, TON Surges 150% in March

21Shares Launches SOL ETP in Europe

In 2021, 21Shares introduced the Solana Staking ETP with the ticker ASOL in Europe, with assets totaling $810 million, fully backed by physical SOL. Through professional risk management, it generates staking rewards, currently at a rate of 4.44%, offering individual investors better protection than custody options. ASOL is listed on six exchanges in Europe, providing investment options in USD, GBP, EUR, and CHF.

Experts Divided on Approval of Solana ETF

VanEck applied for the first Solana Exchange-Traded Fund (ETF) in the US on June 27, followed closely by 21Shares.

VanEck Files for First Solana ETF in the US, Bloomberg Analyst: Approval Not Impossible

Market opinions on the likelihood of approval for a SOL ETF are divided. Cboe, a leading exchange that lists several Bitcoin spot ETFs, believes that without first establishing a futures market or changing regulatory conditions, ETFs for cryptocurrencies other than Bitcoin and Ethereum are unlikely to be approved. JPMorgan and Bloomberg also express doubts about approval, but Bernstein believes that approval of an Ethereum ETF could pave the way for similar tokens like Solana to gain commodity classification.

Interestingly, both 21Shares Core Solana ETF and VanEck Solana Trust have chosen to trade on the Cboe BZX exchange. According to the company's S-1 filing, the fund's creation and redemption will be in cash form, similar to other spot ETFs.

Cboe Exchange Exec: Solana ETF Unlikely in the Near Term