Key Takeaways:
- 21Shares filed an S-1 registration for a Solana trust with the SEC
- The filing adds a second major issuer to the US Solana ETF race
- SEC approval hinges on classification and surveillance questions
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21Shares files Solana S-1 as ETF race draws 2nd major issuer
21Shares has filed an S-1 registration statement for a Solana trust, turning the race for the first US spot Solana ETF into a multi-issuer contest.
21Shares filed an S-1 registration statement with the SEC for a Solana trust on July 6, adding a second major issuer to the push for regulated SOL exposure in the United States.
"The filing shows that Solana is being taken seriously as an institutional asset class, not just a retail trade," said James Seyffart, ETF research analyst at Bloomberg Intelligence.
The S-1 filing follows a similar application from VanEck, which submitted its own Solana trust registration earlier this year. Both issuers are seeking to offer spot Solana ETFs, a product structure that would allow investors to gain SOL exposure through a regulated fund wrapper rather than direct token custody. Financial advisers and managed portfolios typically prefer such structures, according to industry data.
The SEC must still weigh market surveillance agreements, custody arrangements, liquidity requirements, and the unresolved question of how Solana should be classified under US securities law. The agency's next decision on a Solana ETF filing could come as soon as the first half of 2027, though no official timeline has been set.
The filing matters because ETF markets are partly about timing and partly about what fund sponsors choose to pursue. When multiple issuers target the same asset, it tells advisers and institutions that the asset is no longer being treated as a niche trade.
Bitcoin spot ETFs, approved in January 2024, drew more than $30 billion in net inflows in their first 18 months of trading, according to data from The Block. Ethereum spot ETFs followed in July 2024, though their flows were more modest at roughly $2 billion over the same period. Solana would represent the third crypto asset to receive a spot ETF product in the US, should the SEC grant approval.
For SOL, an ETF would change who can access the asset and how. The Solana blockchain processes more than 4,000 transactions per second at peak, according to Solscan data, and its total value locked across DeFi protocols stands at roughly $5 billion as of early July, per DefiLlama. An ETF wrapper would open that ecosystem to a broader pool of capital from registered investment advisers and institutional allocators who face compliance restrictions on direct crypto custody.
The SEC's classification of SOL remains the central hurdle. The agency has previously labeled Solana as a security in enforcement actions against Coinbase and Kraken, though those cases remain in litigation. A spot ETF approval would require the SEC to either reverse that position or find that the trust structure adequately addresses investor protection concerns regardless of classification.
Industry reaction has been measured. The Blockchain Association, a Washington-based trade group, has argued that regulatory clarity through product approvals would benefit both investors and the broader market. "Approving a Solana ETF would show that the SEC is willing to engage with the asset class on its merits rather than through enforcement alone," said Kristin Smith, the group's CEO.
This article is for informational purposes only and does not constitute investment advice.
