Canary Capital has filed an S-1 submission with the U.S. Securities and Exchange Commission (SEC) for a new Solana [SOL] exchange-traded fund (ETF).
According to the document, the ETF’s Net Asset Value (NAV) will be determined based on the Chicago Mercantile Exchange (CME) CF Solana-Dollar Reference Rate.
This recent development follows the asset manager’s recent requests for Ripple [XRP] and Litecoin [LTC] ETFs.
Although Canary has not yet launched any live ETFs, its three most recent filings demonstrate a bold step into the cryptocurrency investment arena.
Canary’s Stance on Solana
Upon the announcement, James Seyffart, an ETF analyst at Bloomberg, highlighted Canary’s aspirations for a SOL ETF in a message on X (previously Twitter).
Commemorating Solana’s solid position in the blockchain environment, Canary acknowledged:
“Despite the intense competition in the L1 and EVM sector, Solana has proven itself as a battle-tested leader for decentralized applications.”
The statement also underlined Solana’s robust DeFi ecosystem, pointing out consistent metrics like daily transactions, active addresses, and new addresses, all within a cost-efficient structure.
Furthermore, the company expressed confidence that the ongoing rise in stablecoin utilization would enhance Solana’s advantage over its rivals.
Solana’s ETF Applications
Canary’s filing represents the latest effort to introduce a Solana ETF in the United States, although it is not the initial one.
Earlier this year, asset management companies VanEck and 21Shares applied for spot SOL ETFs, submitting their S-1 applications in June.
It is worth mentioning that Brazil became the pioneer in approving SOL ETFs outside the U.S. back in August.
SOL’s Performance in the Market
Despite the filing, the price situation was not favorable. After being rejected at the crucial $180 mark, SOL’s chart displayed a red hue.
At the time of reporting, the altcoin was exchanging hands at $166, witnessing a 4.90% decline in the past 24 hours.
Significantly, SOL’s price drop aligned with broader sector losses, with Bitcoin [BTC] slipping below the $70,000 level.
Technical indicators echoed this pattern, with both the RSI and CMF indicating a weakening bullish stance. Currently, they are positioned at 53.46 and 0.15, respectively.
This downtrend has placed SOL at risk of testing the $160 support level, and a breach could lead to further declines.
Furthermore, losing the 100-day (yellow) EMA to sellers could definitively shift the trend in favor of bears.
Potential Growth for SOL ETFs
Nonetheless, the outlook for SOL in the crypto sphere is not entirely bleak.
On October 14th, CryptoCrypto announced that Grayscale had applied to transform its Digital Large Cap Fund (GDLC) into a multi-crypto ETF, which includes Solana among other assets.
On October 29th, the SEC officially recognized Grayscale’s application, marking a significant milestone towards launching the inaugural multi-asset crypto ETF in the United States.
A decision on the application is anticipated within 45 to 90 days.
As the ETF competition intensifies, Canary Capital’s recent submission highlights the escalating demand for investment opportunities centered around Solana.
However, whether this momentum will translate into regulatory approval remains uncertain.