21shares has filed a registration statement for a solana exchange-traded fund (ETF) with the U.S. Securities and Exchange Commission (SEC). The ETF will trade on the Cboe BZX Exchange and will utilize Coinbase Custody Trust Company for secure custody of SOL. Vaneck also recently filed a registration statement with the SEC to launch a solana […]
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BREAKING: 21Shares Joins Race To Launch Spot Solana ETF
In a significant development for the cryptocurrency industry, investment firm 21Shares filed an S-1 registration form for a Spot Solana ETF with the US Securities and Exchange Commission (SEC) on Friday.
The 21Shares application follows a similar filing by Bitcoin ETF issuer and asset manager VanEck on Thursday, indicating a growing interest in Solana as a potential competitor to the anticipated Ethereum ETF market, which is expected to begin trading in July.
21Shares Introduces Core Solana ETF
The 21Shares Core Solana ETF, as described in the filing, is designed to issue common shares of beneficial interest that trade on the Cboe BZX Exchange.
Its investment objective is to track the performance of SOL, providing investors with a convenient and cost-effective method to gain exposure to SOL without making a direct investment in the asset. Based on the index, the ETF will hold SOL and value its shares daily.
The Trust will be sponsored by 21Shares, with CSC Delaware Trust Company acting as the trustee. Coinbase Custody Trust Company will serve as the SOL custodian, holding all of the Trust’s SOL on its behalf.
SOL Price Consolidates After Initial ETF Announcement
While the SEC’s approval of a Solana ETF is subject to regulatory review and compliance, these filings demonstrate the increasing demand for investment products that expose Solana’s digital assets.
If approved, the ETFs would provide investors with a regulated and accessible way to participate in Solana’s potential growth and performance.
Notably, this could be the start of new filings with the SEC by the world’s largest asset managers, as has already been the case with Bitcoin and Ethereum ETFs.
Nonetheless, SOL has not had the same reaction as it did on Thursday with VanEck’s announcement of its Solana ETF filing, which sent SOL’s price to a 9% price recovery towards 0 after a dip to 1 earlier in the week. Now SOL is trading at 2 due to a 4% price correction experienced over the past 24 hours.
Featured image from DALL-E, chart from TradingView.com
Ark Invest and 21shares Amend Spot Ether ETF Filing, Now More Aligned With SEC Preferences
In a move to possibly align more with the SEC regulatory framework, Ark Invest and 21shares have amended their filing for a spot ether ETF, introducing a cash creation and redemption mechanism that mirrors the SEC’s recent approval criteria for spot bitcoin ETFs. Cathie Wood’s Ark Invest Updates Ether ETF Filing, Introduces Cash Mechanism Ark […]
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SEC Postpones Verdict on Ark 21shares and Global X Spot Bitcoin ETFs
The U.S. securities regulator recently announced a delay in its verdict on the Ark 21shares Bitcoin ETF. Consequently, the U.S. Securities and Exchange Commission (SEC) has marked January 10, 2024, as the decisive day to either greenlight or reject the proposed amendment.
SEC Pushes Back Decision on 2 Spot Bitcoin ETFs
A statement from the U.S. securities authority highlighted its decision to push back its judgment on the Ark 21shares Bitcoin ETF, an asset-backed fund aiming for public listing. The filing for this ETF was jointly presented by Cboe BZX Exchange, 21shares, and Ark Invest on April 25, 2023.
This ETF joined the ranks of several spot bitcoin ETF applications, with industry giants like Invesco, Blackrock, Fidelity, Vaneck, Valkyrie, Wisdomtree, and Franklin Templeton all in the queue. Notably, the SEC had previously postponed its decision on seven of these filings, including the Ark 21shares Bitcoin ETF, on August 31, 2023.
Upon a detailed examination of the proposal and subsequent modifications, the SEC said on Tuesday that it chose to prolong the evaluation phase to guarantee a comprehensive review. “The Commission finds that it is appropriate to designate a longer period within which to issue an order approving or disapproving the proposed rule change so that it has sufficient time to consider the proposed rule change, as modified by Amendment No. 3, and the issues raised therein,” the SEC detailed.
“I’m shocked they went this early on Ark and 21Shares. My assumption is they’re worried about the government shutdown and trying to get ahead of that,” Bloomberg Intelligence ETF analyst James Seyffart said on Tuesday. In addition to the Ark 21shares filing, the securities watchdog also deferred its decision on the spot bitcoin ETF filing submitted by Global X and its listing partner Cboe BZX.
What do you think about the SEC’s recent delay on two spot bitcoin ETF registrations? Share your thoughts and opinions about this subject in the comments section below.
Early Rejection Of 21Shares Spot Bitcoin ETF Sparks Concerns
The US Securities and Exchange Commission’s (SEC) early delay of the ARK 21Shares Spot Bitcoin ETF application has raised concerns in the crypto community about what this move might mean for the potential launch of any Spot Bitcoin ETF this year.
No Spot Bitcoin ETF This Year?
In a tweet shared on his X (formerly Twitter) platform, Bloomberg Analyst James Seyffart questioned the SEC’s latest decision and whether or not it “may put the hammer down for any hopes of an ETF approval this year.” He further quizzed whether this means we could see an imminent delay on some other Spot Bitcoin ETF applications with a deadline in October.
On September 26, the SEC extended the time to decide on Cathie Wood’s ARK Invest ETF application until January 10, 2024 ( the final deadline). However, it is worrisome that the Commission had until November 11 (about 46 days to go) before making this decision but chose to do it this early. The SEC has usually made such a decision just days (and not weeks) before the deadline.
Seyfarrt showed less optimism in a subsequent tweet when he stated, “Its so over. Everybody can pack up and go home now.” signaling that he had probably lost hopes of a Spot Bitcoin ETF being launched this year.
Its so over. Everybody can pack up and go home now. https://t.co/wBsTHXCuEs
— James Seyffart (@JSeyff) September 26, 2023
His statements are more significant considering that he, alongside another Bloomberg analyst, Eric Balchunas, had increased the likelihood of a Spot Bitcoin ETF launching this year to 75% following Grayscale’s victory against the SEC in August.
Amidst all these delays, the SEC is yet to make a statement regarding the Grayscale’s application as the court had ordered the Commission to review the application again. Many expect the Commission to appeal the decision, with the deadline for an appeal coming in October.
Plausible Reasons For The SEC’s Early Delay
Many in the crypto community, including Seyffart, had two major theories on why the SEC decided early on the ARK 21Shares Spot Bitcoin ETF application. One, they attributed it to the potential government shutdown that is looming.
The SEC is expected to be affected if the US government services were to shut down on October 1. The Commission will have to furlough 90% of its workforce and suspend most of its activities. However, it seems far-fetched considering that November 11 still seems far off, and government activities will have resumed by then.
The second major theory was that the letter that Congress sent to the SEC Chair Gary Gensler might have struck the wrong nerves, prompting the Commission to make such a decision.
In the letter, the congressmen urged the Commission to approve the pending Spot Bitcoin ETFs following the court’s decision in the Grayscale case, stating that the “SEC’s current posture is untenable moving forward.”
Ark Invest, 21shares, and Vaneck Forge Ahead With Spot Ethereum ETF Applications
The U.S. Securities and Exchange Commission (SEC) has temporarily postponed its ruling on seven bitcoin exchange-traded fund (ETF) applications. Meanwhile, a fresh wave of applications has emerged, with Ark Invest and 21shares, in addition to Vaneck, seeking approval for spot ethereum ETFs. These forthcoming funds, should they receive the green light, will enable investors to gain direct access to ether’s price movements.
Ethereum ETF Frenzy
As fund managers eagerly pursue SEC approval for their spot bitcoin ETFs, this week has witnessed a dynamic twist with the introduction of two ethereum-based spot ETF applications. In the initial submission, Ark Invest and 21shares have joined forces, with the latter set to assume the role of the trust’s sponsor. Notably, the ETF will entrust Coinbase Custody with the crucial responsibility of safeguarding the fund’s valuable ether reserves.
“The trust will not invest in derivatives,” the Ark and 21shares’ filing details. “The sponsor believes that the shares are designed to provide investors with a cost-effective and convenient way to invest in ether without purchasing, holding and trading ether directly.”
BOOM: ARK just filed for a Spot Ether ETF, the first one.. prob more coming imminent pic.twitter.com/PjK5aSNPlS
— Eric Balchunas (@EricBalchunas) September 6, 2023
In a development that occurred back in June 2023, Coinbase was appointed as the surveillance-sharing agreement (SSA) partner for Ark Invest and 21shares. This strategic alliance comes as these entities gear up for their ETF venture. Meanwhile, the fund also secured a partnership with the Bank of New York Mellon and has its sights set on listing through Cboe’s BZX exchange.
Vaneck, in a parallel move, has embarked on a comparable journey, with Coinbase serving as their SSA partner as well. Vaneck assumes the crucial roles of market agent and sponsor for the ETH trust, with State Street Bank handling the administration aspects. According to Vaneck’s filing, each share will represent a fractional interest in the trust’s net assets, primarily comprising ETH securely held by the custodian on behalf of the trust.
“The trust generally does not intend to hold cash or cash equivalents,” Vaneck’s registration details. “However, there may be situations where the trust will unexpectedly hold cash on a temporary basis.”
What do you think about the two spot ether ETF filings? Share your thoughts and opinions about this subject in the comments section below.
21Shares Parent Firm Becomes Switzerland’s Crypto Giant As Gets Valued At $2B
The popularity of crypto sector is climbing higher daily. More companies are diving into the industry, given its high potential for making more profits than most conventional assets. These emerging firms notably impact the system by providing unique crypto-related products and services.
For the success of most of their projects, some of these crypto service firms engage in fundraising. These processes have become one of the famous activities that occur in the crypto industry.
Such rounds usually help them generate most of the required funds to facilitate their ongoing or future projects. Other top shots in the crypto space usually facilitate and support these rounds for upcoming firms.
In a new development, 21.co, the parent company of 21Shares, disclosed its recently concluded fundraising round. According to the crypto ETF issuer, Marshall Wace pioneered the round, which generated about million in the end.
This recent fundraising round marks the first of its kind for 21.co in the past two years. Besides Marshall Wace as the leading company, other firms participated in the fundraising. These include Quiet Ventures, Valor Equity Partners, Collab+Currency, and ETFS Capital.
21.co Got Increased Valuation Through Fundraising
With the realized fund from the round, 21.co got a spike in its valuation, which is currently at billion. The firm maintained that it climbed a better positive ladder that will facilitate an increase in its performance. Also, through the fundraising round and rise in valuation, 21.co now stands as the largest cryptocurrency unicorn in Switzerland.
The subsidiary firm has been creating supportive moves for the activities of its parent operations. 21Shares added different tasks that would assist 21.co in its expansion goals in the Middle East and some European nations.
Also, 21Shares moved into the US market in May by launching two different private funds. Those funds are meant to bring crypto-asset exposure to accredited investors.
The Firm Focuses Towards Crypto Market Expansion
Through its announcement, 21.co disclosed its new focus based on the increased valuation. It reported that operations while focusing on its products would drive rapid and enhanced growth. Also, it promised to include the acquisition of strategic talents and key market expansions.
Cryptocurrency market to recover above trillion | Source: Crypto Total Market Cap on TradingView.com
Additionally, the ETF issuer has drawn more plans to introduce institutional and retail investors to the asset class. The firm has decided that take regulatory compliance as its watchword. Hence, it will also follow the regulatory standards within its region of operation.
Recall that by the end of 2021, 21.co’s revenue record was at the level of billions. Also, its performance during the crypto winter was not too bad. The firm could hold on to its anchor through the storm and still recorded sustainable inflows in operations.
Featured image from BBC, chart from TradingView.com
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