Crypto asset management firm Grayscale converted its Solana ETF (GSOL) to start trading on Wednesday. However, its parent company, Digital Currency Group (DCG), and a related investment firm sold shares of the Solana ETF before its launch. NYSE Arca has also listed Grayscale Solana Trust ETF (GSOL) shares for trading on the exchange. The conversion into a Solana ETF became auto-effective with the latest filing with the U.S. Securities and Exchange Commission.
Grayscale Solana ETF (GSOL) Files 8-A and CERT with the U.S. SEC
According to a U.S. SEC filing, the world’s largest digital asset-focused investment firm, Grayscale Investments, submitted Form 8-A12B and CERT. This filing highlighted approval from NYSE Arca to list the Grayscale Solana ETF (GSOL). The Form 8-A12B filing makes the application auto-effective for the conversion from Grayscale Solana Trust to Grayscale Solana ETF. This action occurred in accordance with earlier guidance from the U.S. SEC’s Division of Corporate Finance. In early October, Grayscale Solana Trust submitted an S-1 form to announce a 0.35% fee for the Solana ETF and updated language and risk factors related to staking.
The GSOL already has over $102 million in Assets Under Management (AUM), accounting for 0.09% of the SOL supply. Additionally, nearly 75% of Solana is staked. The crypto community anticipates a maximum initial selling of $25 million, which will likely be sold over time, similar to their staked SOL. This ETF becomes the second Solana ETF to launch this week, following the Bitwise Solana Staking ETF (BSOL).
DCG Selling Grayscale Solana ETF (GSOL)
Digital Currency Group (DCG) and DCG International Investments sold shares of the Grayscale Solana ETF before its debut today, as indicated in SEC filings. DCG sold 387 shares, with an aggregate market value of $5,665.68. The approximate sale date was October 28, and the transaction was executed through Canaccord Genuity Corp. The firm originally acquired these shares on October 19 of the previous year in a privately negotiated transaction from the issuer for cash. The total shares outstanding are 7,231,035.
Moreover, DCG International Investments sold 7,100 shares on October 27 and an additional 6,723 shares on October 28, also through Canaccord Genuity Corp.
SOL Price Falls Over 3%
The SOL price has fallen by over 3% in the past 24 hours, currently trading at $197. The 24-hour low was $191.39, and the high was $202.89. However, trading volume has increased by nearly 25% in the last 24 hours, indicating significant buying activity amid the trading of the Bitwise Solana Staking ETF (BSOL) on NYSE Arca. Bitwise's Solana ETF experienced $69.5 million in inflows on its debut day, which was 480% higher than SSK. Bloomberg ETF analyst Eric Balchunas confirmed $56 million in trading volume on the first day. Meanwhile, CoinGlass data showed buying in the derivatives market in the last few hours. At the time of writing, the 4-hour total SOL futures open interest had climbed by nearly 0.50% to $10.52 billion. Furthermore, SOL futures open interest on CME and Binance have risen more than 6% and 5%, respectively, in the last 24 hours.