Grayscale Files S-1 for Solana ETF on NYSE Arca, Excludes Staking Amid Fidelity's Bid

Grayscale Investments has filed an S-1 form with the U.S. Securities and Exchange Commission (SEC) to convert its Grayscale Solana Trust (GSOL) into a spot Solana ETF, to be listed on NYSE Arca. This move follows a previous 19b-4 filing with the NYSE in December 2024, indicating a continued effort to expand investor access to cryptocurrencies on Wall Street.

The proposed ETF, if approved, will not include any Solana staking functionality, as stated in the registration statement. This decision aligns with Grayscale's approach to other spot ETFs, such as those for Bitcoin and Ethereum, which also excluded staking to meet regulatory requirements.

The filing comes amidst a backdrop of increased institutional interest in Solana, despite recent market volatility that saw Solana's price drop to a 13-month low of $114.50. Analysts suggest that Solana's chances of receiving regulatory approval are high, given the SEC's new, more crypto-friendly leadership and the existence of a regulated futures market for Solana in the U.S. This filing follows closely after the SEC recognized Fidelity's application for a spot Solana ETF, amidst broader market concerns driven by U.S. President Donald Trump's trade war.

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