Grayscale Launches Solana ETF With Staking Option

Grayscale Investments has introduced a new exchange-traded fund (ETF) that tracks the price of Solana (SOL) and includes staking options. The fund, called the Grayscale Solana Trust ETF (GSOL), will begin trading on NYSE Arca on October 29. 

The move makes Grayscale the first company in the U.S. to offer staking options through spot crypto ETFs. This marks an important step for digital asset investment in the country.

A Major Step for Grayscale and Solana Investors

The GSOL product was first launched in 2021 as a closed-end fund, offering investors Solana exposure through traditional brokerage accounts. This month, Grayscale began staking Solana and officially converted GSOL into an ETF.  According to Grayscale, the GSOL ETF marks an important milestone in bringing digital assets into mainstream portfolios. 

In a recent statement, Inkoo Kang, Senior Vice President of ETFs at Grayscale, said the launch of the GSOL highlights the company’s belief in digital assets. He added that modern portfolios should include digital assets along with stocks, bonds, and other investments to support growth and balance.

Beyond traditional investment exposure, Grayscale’s GSOL ETF also introduces staking to institutional investors. Through staking, investors can benefit from Solana’s price changes while also helping to secure the network and earn rewards.

Kristin Smith, President of the Solana Policy Institute, said this is an important step because it lets investors support the network and encourage new ideas for developers. Solana (SOL) is currently the sixth-largest cryptocurrency by market value, showing its growing importance in the blockchain world.

U.S. Market Sees Wave of Crypto ETF Launches 

Grayscale’s launch follows closely after Bitwise introduced its own Solana Staking ETF (BSOL) on the New York Stock Exchange. The fund has now surpassed a big milestone with over $100 million in assets under management. Furthermore, the Canary also listed its Litecoin ETF and HBAR ETF on Nasdaq this week, showing the growing popularity of crypto investment products.

These launches come at a time when the U.S. government is in its second month of a shutdown, following Congress’s failure to approve funding. 

The shutdown has left the U.S. Securities and Exchange Commission (SEC) with fewer workers. Even with the reduced workforce, the SEC recently gave new guidance to help companies move ahead with public offerings more easily.

Regulatory Progress Amid Challenges

Just a week into the shutdown, the SEC clarified that companies could file an S-1 registration statement without a delaying amendment. This allows ETFs to automatically go effective after 20 days, giving firms a clearer path to market.

Before the shutdown, the SEC had also approved new listing standards proposed by several exchanges. These standards update the rules for trading and listing commodity-based trust shares. The agency made it easier for crypto ETF applications to move ahead without needing direct SEC approval. However, this only works if the applications follow the new listing rules.