Canary Capital Files for Solana-Based ETF

Canary Capital has filed for a Solana-based exchange-traded fund (ETF), seeking U.S. regulatory approval.

On Wednesday, the crypto investment firm submitted an S-1 registration statement for the Canary Solana ETF. The fund aims to provide exposure to the price of Solana ('SOL') held by the Trust, although no custodian or administrator has been named.

Canary Capital highlighted Solana's robust DeFi ecosystem, noting:
> "Solana's robust DeFi ecosystem has led to strong sustained on-chain analytics as measured by transactions per day, active addresses, and new addresses, while maintaining a low fee environment for all consumers."

Steven McClurg, founder of Canary Capital, previously established Valkyrie Funds, which manages other spot crypto ETFs. The firm has also filed for registration statements for a spot Litecoin ETF and an XRP ETF.

Similarly, fund manager VanEck filed for a spot Solana ETF in June. Matthew Sigel, head of digital assets research at VanEck, stated that SOL is a commodity due to its functionality akin to Bitcoin and Ether. However, the SEC classified SOL as a security when it filed charges against the crypto exchange Binance last year.

Earlier this year, the SEC approved 11 spot Bitcoin ETFs and subsequently gave the green light for eight Ethereum ETFs.