CoinShares Joins Race for Solana ETF with SEC Filing

CoinShares, a prominent European asset manager, has intensified the competition for a spot Solana ETF in the United States by filing a Form S-1 with the U.S. Securities and Exchange Commission (SEC) on June 11, 2025. This move makes CoinShares the eighth firm to seek SEC approval for such a product, joining other industry leaders such as Fidelity, Grayscale, VanEck, 21Shares, Invesco Galaxy, and Franklin Templeton. The filing underscores the growing interest in cryptocurrency-based investment products and the increasing competition among asset managers to capture a share of this market.

The SEC has been actively engaging with applicants, requiring them to address staking and redemption in their updated Solana filings. This proactive dialogue is seen as a positive step in the approval process, with some analysts predicting a 90% chance of approval. The issue of staking remains a key hurdle, as Solana's proof-of-stake model differs from the spot Ethereum ETFs approved earlier this year, which do not allow funds to earn staking rewards for investors. CoinShares' application proposes a non-staking custody structure initially, with the possibility of including staking in the future if regulators allow it. The SEC now has up to 240 days to review and decide on the CoinShares Solana ETF Trust, with the next major deadline in March 2026.

Solana's Total Value Locked (TVL) has reached $8.7 billion, making it the second-largest programmable blockchain. This growth in TVL reflects the increasing acceptance of Solana as a legitimate asset class and its attractiveness to investors due to its high transaction speed and low fees. The launch of a spot Solana ETF would provide investors with a more straightforward way to gain exposure to the cryptocurrency, without the need to hold it directly.

CoinShares' entry into the race is notable given its track record in the cryptocurrency space. The firm has been involved in the launch of several cryptocurrency investment products, including ETFs and trusts. Its experience and expertise in this area could give it an edge in the competition to launch a spot Solana ETF. However, the path to approval is not without its challenges. The SEC has been cautious in its approach to cryptocurrency-based investment products, citing concerns about market manipulation, investor protection, and the lack of regulatory oversight. Despite these challenges, the competition to launch a spot Solana ETF is likely to continue, driven by the growing interest in cryptocurrencies and the potential benefits of a spot ETF.