21Shares has announced its application for a Solana (CRYPTO: SOL) spot ETF, following closely on the heels of VanEck’s similar filing.

What Happened: This development marks another significant step in the ongoing efforts to bring cryptocurrency-based investment products to mainstream financial markets.

The proposed 21Shares Core Solana ETF aims to track the performance of SOL, the native digital asset of the Solana blockchain.

According to the filing, the Trust will hold SOL and value its shares daily based on a designated index.

A key point of interest in the filing is the contingency plan outlined for potential regulatory changes.

The document states that if SOL is ultimately determined to be a security, and the sponsors decide not to comply with additional regulatory and registration requirements, they will terminate the Trust.

This clause highlights the ongoing regulatory uncertainty surrounding cryptocurrencies and their classification.

Also Read: Donald Trump’s Election Odds Surge To 64% Following Debate, According To Crypto Bettors

Why It Matters: The ETF, if approved, would offer investors exposure to Solana’s performance without the need to directly purchase, hold, or trade the cryptocurrency.

This approach could potentially provide a more accessible and regulated avenue for traditional investors to participate in the cryptocurrency market.

As with other cryptocurrency ETF applications, the proposal will need to navigate the regulatory landscape and gain approval from the Securities and Exchange Commission (SEC).

The outcome of this application, along with others in the pipeline, could have significant implications for the integration of cryptocurrencies into mainstream financial products.

For those interested in further exploring the implications of these developments, Benzinga’s Future of Digital Assets event on Nov. 19 will provide in-depth discussions and expert insights into the evolving landscape of digital assets and regulatory frameworks.

Read Next: Bitcoin-Powered Core Blockchain Launches Exchange-Traded Product In Sweden

Image: Shutterstock