Canary Capital has filed to list a spot Solana ETF product after it made related move for XRP and Litecoin products earlier
Canary Capital has applied to list a Solana Exchange Traded Fund (ETF) with the United States Securities and Exchange Commission (SEC). For now, the filing lacks certain details, including the name of its potential custodian and administrator.
Canary Seeks Regulated Access With Solana ETF
According to the S-1 registration, the Canary Solana ETF aims to “provide exposure to the price of Solana (‘SOL’) held by the Trust.”
Notably, a few other asset managers, including VanEck and 21Shares, filed for a similar offering in June. If eventually approved by the Commission, investors will gain exposure to SOL without the risks of investing in the coin directly.
Solana’s active ecosystem and low transaction fees caught Canary Capital’s attention. Both features are core contributors to the high transaction volume and a growing number of unique addresses on the Solana network.
“Solana’s robust DeFi ecosystem has led to strong sustained on-chain analytics as measured by transactions per day,” Canary Capital wrote in the SOL ETF filing.
Apart from this filing, Canary Capital has filed for other crypto ETFs in the past. In the first week of October, the investment management firm filed to list and trade XRP ETF in the United States. It is worth noting that its filing followed Bitwise’s from a few days earlier.
In Canary’s defense, it claimed that it is confident in the current regulatory climate around XRP.
Hurdles Surrounding a Litecoin ETF
A week after filing for an XRP ETF, the crypto-focused investment firm founded by former Valkyrie Funds co-founder Steven McClurg filed an application for the first Litecoin ETF product. In the case of this particular S-1 registration, market observers are still trying to understand the prospects of a Litecoin ETF.
Senior Bloomberg ETF analyst James Seyffart pointed out that Litecoin’s regulatory classification could follow a similar trajectory to Bitcoin. In other words, the SEC might approve the product since Litecoin is a fork of Bitcoin.
On the other hand, he highlighted that an ETF’s approval from the regulator is hinged on how sizable the underlying cryptocurrency is. It is also linked to the liquid futures market, which is federally regulated in the U.S.
In the meantime, Litecoin is yet to meet that requirement. Meanwhile, the series of crypto ETF applications reflects Canary’s strategic focus on providing investors access to regulated pathways to prominent digital assets.
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