Digital assets investment management firm 21Shares filed an application with U.S. regulators to launch an exchange-traded fund tied to the spot price of Solana, a cryptocurrency. This is the second such filing in as many days, following a similar move by VanEck. The Securities & Exchange Commission approved spot bitcoin ETFs offered by both firms, among others, in January after a long battle. Both VanEck and 21Shares are among the asset managers awaiting SEC approval to launch spot ETFs tied to the price of Ethereum, the second-largest cryptocurrency.

The CBOE, the exchange on which both asset managers plan to list Solana ETFs if approved, must still request regulatory approval to change its rules and allow these new products to trade. People involved in the Solana discussions, who declined to be identified because of the confidentiality of the process, said that filing could come within days or weeks. A spokeswoman for CBOE declined to comment.

A third asset manager, Canada's 3iQ, filed earlier in June for permission from Ontario regulators to list a similar Solana-based product on the Toronto Stock Exchange. Solana is the fifth-largest cryptocurrency measured by market capitalization, according to CoinGecko. The three filings have combined to drive the price of Solana 9.4% higher in the last seven days, even as the prices of bitcoin and ether dropped 4.6% and 2.8% respectively, according to CoinGecko.

So far, however, no futures contracts on Solana trade on the CME, in contrast to the pattern with both bitcoin and ether. The SEC approved futures-based ETFs tied to both tokens before considering the spot products. The existence of futures contracts, however, "should not be the sole criterion for ETF eligibility," said Andrew Jacobson, head of legal at 21Shares.

The move by 21Shares to file for a spot Solana ETF is seen as a positive development for the cryptocurrency market. It indicates that there is growing interest in Solana and other alternative cryptocurrencies, and that asset managers are looking to provide investors with more options to gain exposure to the cryptocurrency market.

The filing by 21Shares is also seen as a sign that the SEC may be more open to approving spot cryptocurrency ETFs. The SEC has been cautious in approving such products in the past, but the approval of spot bitcoin ETFs in January may have set a precedent for other cryptocurrencies. If approved, the Solana ETF would be the first spot cryptocurrency ETF to be listed on a major exchange in the US.

The Solana ETF would track the spot price of Solana and would be listed on the CBOE. It would be a passively managed fund, meaning that it would not try to beat the market or pick winners, but would instead track the market as a whole. This would provide investors with a simple and cost-effective way to gain exposure to the Solana market.

The filing by 21Shares is subject to a 75-day review period by the SEC. During this time, the SEC will review the filing to determine whether it meets the necessary requirements for approval. If approved, the Solana ETF would be listed on the CBOE and would be available for trading by investors.

In conclusion, the filing by 21Shares for a spot Solana ETF is a positive development for the cryptocurrency market. It indicates growing interest in Solana and other alternative cryptocurrencies, and may be a sign that the SEC is more open to approving spot cryptocurrency ETFs. If approved, the Solana ETF would provide investors with a simple and cost-effective way to gain exposure to the Solana market.