In a significant move for the cryptocurrency market, NYSE Arca, an arm of the New York Stock Exchange focused on exchange-traded products, has filed documentation to introduce a spot Solana ETF through Grayscale Investments. This filing, known as a 19b-4, was submitted on Tuesday to urge the U.S. Securities and Exchange Commission (SEC) for a regulatory green light.

The proposed Solana Trust, if given the nod, would see Coinbase Custody Trust Company, LLC, taking on the role of custodian, with BNY Mellon Asset Servicing as the administrator. This development positions Grayscale alongside other firms like 21Shares, VanEck, Bitwise Asset Management, and Canary Capital, all of which have been in the race to launch a Solana-based ETF over the last year.

The crypto industry is buzzing with optimism following the recent U.S. presidential election, which saw Donald Trump return to office, and the exit of SEC Chair Gary Gensler. These events have sparked hopes that the SEC might adopt a more crypto-friendly stance, potentially paving the way for Solana ETF approval in the coming year.

Grayscale, already successful with its spot Bitcoin and Ethereum ETFs, has set a precedent for this kind of financial product. The approval for these ETFs followed a court decision in August 2023, where judges criticized the SEC’s previous denial of Grayscale’s Bitcoin ETF proposal as “arbitrary and capricious,” leading to a reevaluation and eventual approval.

This legal battle began in 2022 when Grayscale challenged the SEC’s decision not to allow its flagship Bitcoin Trust (GBTC) to transition into a spot ETF, highlighting the ongoing tension between regulatory bodies and the burgeoning crypto sector.