Grayscale Investments has launched a new exchange-traded fund that tracks the price of Solana and provides staking rewards.
The Grayscale Solana Trust ETF (GSOL) began trading on NYSE Arca on Wednesday, marking a major step in expanding institutional access to Solana-based products.
According to Grayscale, the firm is now among the largest Solana exchange-traded product (ETP) managers in the United States, based on assets under management.
From Closed-End Trust to ETF Conversion
Grayscale first launched GSOL in 2021 as a closed-end investment vehicle. It provided investors with exposure to Solana through traditional brokerage accounts. The company converted the product into an ETF this month and introduced staking, enabling investors to earn network rewards directly.
In a statement, Inkoo Kang, Grayscale’s Senior Vice President of ETFs, said the launch highlights the firm’s belief that digital assets are an essential part of modern portfolios, alongside equities, bonds, and alternative investments.
Rising Momentum for Crypto ETFs
Grayscale’s launch follows other recent entries into the crypto ETF market. Bitwise introduced its own Solana ETF on the New York Stock Exchange just one day earlier. Canary listed Litecoin and HBAR ETFs on Nasdaq on Tuesday.
These launches reflect growing interest in regulated crypto investment products, even as U.S. government operations face disruption.
ETF Approvals Proceed Despite U.S. Government Shutdown
The new ETFs were introduced while the U.S. government remains partially operational. Many employees at the Securities and Exchange Commission (SEC), which oversees ETF listings, are currently furloughed due to stalled funding approvals in Congress.
Despite limited staffing, the SEC issued guidance allowing firms to proceed with ETF filings by submitting S-1 registration statements without a delaying amendment. This move enables new funds to take effect automatically within 20 days of filing.
Ahead of the shutdown, the SEC also approved updated listing standards for commodity-based trust shares across multiple exchanges. This decision accelerates the approval process for dozens of pending crypto ETF applications.
Broader Implications for Solana Investors
Solana (SOL) remains one of the largest cryptocurrencies by market capitalization, ranking sixth according to CoinGecko. The new ETF gives investors another pathway to gain exposure to Solana’s ecosystem.
Kristin Smith, president of the Solana Policy Institute, said these staking-enabled products offer investors more than price exposure. According to her, participants can also support network security, contribute to developer innovation, and earn staking rewards, helping expand the asset’s role in decentralized finance.
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