The SEC is paving the way for Solana-based exchange-traded funds (ETFs). This could be a big deal for how people invest in crypto.
The SEC Opens the Door for Solana ETFs
The SEC has accepted a filing for a Solana ETF called the “Canary Solana Trust.” This means they’re open to public comments on the proposal. The exchange and the ETF sponsor believe their proposal meets all the necessary regulations to prevent fraud and manipulation. They argue that the existing measures are strong enough, so they don’t need the extra step of a surveillance-sharing agreement—something usually required for ETFs.
A key point in their argument is the huge increase in US investment in Solana. Billions have already flowed into over-the-counter (OTC) funds and various trading platforms. The proposed ETF would give US investors a safer, more transparent way to invest in Solana through a regulated market. This should reduce price volatility, lower fees, and offer an alternative to directly owning SOL.
Why Solana Might Be Resistant to Market Manipulation
The ETF proposal also tackles concerns about manipulating Solana’s price. The argument is that Solana’s decentralized and globally distributed nature makes it hard to manipulate. Unlike traditional markets, Solana doesn’t have issues like insider trading or supply chain disruptions that could be exploited. The spread of trading across many platforms, along with high trading volume, further reduces the risk of manipulation. Any attempt to artificially inflate or deflate the price would require a massive, coordinated effort across many different exchanges.
The Canary Solana Trust will be overseen by the Delaware Trust Company and a third-party administrator. It will only hold Solana (SOL), cash, or cash equivalents. It won’t be classified as an investment company or regulated as a commodity pool.
What This Means for Solana and Altcoins
SEC approval of these Solana ETFs would be a huge step forward for altcoin ETFs, showing that crypto is becoming more accepted in traditional finance. Interestingly, despite this positive development, the price of SOL hasn’t seen a corresponding jump, currently sitting around $196 after a recent 17% drop.
