Canary Capital files for spot Solana ETF amid growing interest

Canary Capital, a newly established digital asset manager, has filed with the U.S. Securities and Exchange Commission (SEC) to launch a spot Solana (CRYPTO:SOL) exchange-traded fund (ETF). 

This filing makes Canary the third firm to pursue a Solana ETF, following applications from VanEck and 21Shares earlier this year. 

If approved, the ETF would allow investors to gain exposure to Solana (SOL) without directly holding the cryptocurrency. 

Canary Capital, based in Nashville and launched in September, aims to provide crypto trading and management solutions for institutional investors. 

The firm’s latest filing follows recent applications for XRP and Litecoin ETFs. 

According to the company’s statement, Solana has established itself as a strong competitor to Ethereum by offering cheaper and faster transactions. 

“Despite the hyper-competitive L1 and EVM landscape, Solana has emerged as a battle-tested front-runner for decentralized applications,” Canary said, emphasising its robust DeFi ecosystem and consistent on-chain analytics. 

Solana’s native blockchain supports decentralised applications (dApps), DeFi projects, and meme coins, contributing to its current market cap of $82 billion. 

The asset’s value has surged by 400% over the past year, with the coin currently trading around $175. 

The SEC’s stance on approving crypto ETFs has shifted gradually. 

Bitcoin (CRYPTO:BTC) ETFs gained approval in January, followed by Ethereum (CRYPTO:ETH) ETFs in May. 

However, the SEC remains cautious, often taking legal action against firms for allegedly selling unregistered securities. 

Notably, the SEC has suggested that Solana might fall under this category. 

While analysts believe Solana ETFs could eventually receive approval, the timeline may depend on upcoming U.S. elections and the future leadership of SEC Chairman Gary Gensler. 

VanEck and 21Shares, both prominent asset managers, submitted their Solana ETF filings in June and already offer Bitcoin and Ethereum ETFs.

At the time of reporting, the Solana price was $175.39.