Grayscale Seeks to Convert Solana Trust into ETF Amidst Solana's Strong Market Rally

Grayscale is making a move to turn its Solana Trust into an exchange-traded fund, or ETF. This trust, known as Grayscale Solana Trust (GSOL), started in 2021 and currently manages about $134 million in assets.

With this step, Grayscale becomes the fifth asset manager to seek a Solana ETF. Other players in the game include Bitwise, VanEck, 21Shares, and the newly formed Canary Capital. They all announced their plans earlier this year.

On Tuesday evening, Grayscale submitted a 19b-4 filing through NYSE Arca. This exchange is where the fund would be listed. The U.S. Securities and Exchange Commission, or SEC, requires this filing. It’s how exchanges inform the SEC about proposed rule changes.

This isn’t Grayscale's first rodeo. Earlier this year, the company successfully converted its flagship Ethereum and Bitcoin trusts into ETFs. The Solana Trust was Grayscale's 16th investment product, and it holds $134 million in assets according to the latest filing.

Solana has seen a big rally this year, especially after Donald Trump's early November election. Many believe this signals a friendlier regulatory environment for cryptocurrencies. Following the filing, SOL jumped about 3% and has gained over 130% year-to-date.