Canary Capital Files for Spot Solana ETF in Latest SEC Push

SUMMARY

Canary Capital submitted an S-1 registration for its Solana ETF on Wednesday.
VanEck previously filed for a spot in Solana ETF in June.

Canary Capital has filed for a Solana-based spot exchange-traded fund (ETF), intending to become one of the few firms to gain regulatory endorsement from the U.S. Securities and Exchange Commission (SEC). The application, submitted as an S-1 registration statement on Wednesday, outlines Canary’s objective to “provide exposure to the price of Solana (‘SOL’) held by the Trust.” The filing, in any case, does not indicate a custodian or administrator for the fund, leaving these parts undisclosed for now.

This latest filing by Canary Capital highlights Solana’s request in the crypto space, backed by its dynamic decentralized fund (DeFi) ecosystem. “Solana’s strong DeFi ecosystem has led to solid, sustained on-chain analytics as measured by transactions per day, active addresses, and new addresses, whereas keeping up a low-fee environment for consumers,” Canary noted. These measurements are seen as positive indicators, situating Solana as a solid candidate within the competitive scene of blockchain technology.

Founded by Steven McClurg, Canary Capital has made a number of moves to broaden its ETF offerings. McClurg, who moreover founded Valkyrie Funds, has a background in managing other spot crypto ETFs and sees potential in Solana alongside other cryptocurrencies. The company has also submitted filings for spot ETFs based on Litecoin and XRP, diversifying its offerings as it awaits the SEC’s decisions on these proposals.

Canary Capital is not alone in its interest of a Solana ETF. Fund manager VanEck filed a comparable application in June. Matthew Sigel, head of digital resources research at VanEck, posted on social media platform X that Solana qualifies as a product, similar to Bitcoin and ether, based on its usefulness within the market. Be that as it may, regulatory clarity on Solana remains questionable, as the SEC has already classified Solana as a security in its 2022 legal activity against Binance.

The recent wave of ETF applications reflects a broader trend within the SEC’s approach to spot crypto ETFs. Earlier this year, the SEC affirmed 11 spot bitcoin ETFs, followed by eight Ethereum ETFs. These endorsements represent a move, as the SEC continuously opens to cryptocurrencies as regulated investment products. The endorsement of these ETFs may give grounds for future applications, however, the status of Solana remains in flux due to its classification and progressing regulatory scrutiny.

With the SEC’s decision-making approach possibly changing, Canary Capital and other crypto-focused firms hope to capitalize on the momentum, which might drive investor interest and certainty in blockchain-based ETFs. Whereas regulatory challenges remain, the progress of spot bitcoin and Ethereum ETFs may emphatically affect the future of Solana ETFs and similar digital resources.