Grayscale Investments has sought to expand its initial Solana (SOL) investment vehicle by converting it to an ETF. Hence, the company has filed for a Solana ETF on NYSE Arca. The move will make its $134 million SOL trust more accessible as it turns into a spot ETF.
This comes at a time when SOL is in a recovery mode, as it gained 6% in 24 hours to trade at $237. Earlier last week, Solana went through a steep decline of 12%, which resulted in the coin dipping to $215.
The new price movement is happening after Solana achieved an all-time high of more than $260 prior to a pullback.
The downward trend is attributed to market rotations, which saw XRP overtake SOL in market capitalisation, rising to the 3rd largest crypto position.
However, these downturns didn't affect the Solana network's position in the crypto market as seen in the rise in spot ETF filing like that of Grayscale.
Meanwhile, the SEC has revealed that it has started reviewing Solana ETF registration forms filed by many issuers like Grayscale.
The spot ETF filing shows Grayscale proposing to directly track Solana's price through its ETF similar to how it operates its Ethereum and Bitcoin ETFs.
Other companies like Canary Capital, 21Shares and VanEck have also filed for Solana-based ETFs on the Cboe exchange.
Given that Donald Trump is resuming office at the White House next month, crypto ETF approvals have increased. This is further strengthened by pro-crypto advocate Paul Atkins' selection as the SEC Chair as the regulatory environment would be more favourable for Solana ETFs.
At press time Solana was up 5.11% in the last 24 hours to trade at $236.55 while its trading volume has increased 32.66% to reach $8.56 billion and its market cap rose to $112.41 billion.