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Solana Takes Center Stage With Spot ETP Filing

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  • Cboe BZX files for Solana Spot ETF from Bitwise Asset Management.
  • Solana’s growing popularity and global adoption with Europe leading the way.
  • A crypto-friendly administration could accelerate SOL Spot ETF in the U.S.

The Cboe BZX Exchange has just filed to list a spot Solana ETP from Bitwise Asset Management. Bitwise now joins VanEck and Canary Capital in the race for SEC approval. The filing has sparked exciting developments that could open up new investment opportunities for crypto enthusiasts and traditional investors alike.

The proposed ETP would directly hold SOL, the native token of the Solana blockchain and the third-largest crypto asset in the world. While the ETP will initially operate as a cash-settled product, Bitwise aims to transition it to a physically-backed structure, allowing investors to directly own SOL tokens. This would make it a truly unique investment vehicle.

Solana
Solana Takes Center Stage With Spot ETP Filing 2

The rise of Solana-linked funds (ETFs) comes amidst a rebound crypto market led by Bitcoin’s recent rallies. This signals a transformative phase for the crypto industry. Investment giants such as Grayscale and Bitwise have already introduced crypto index funds and spot ETFs for major assets

In Europe, SOL-linked ETFs have already made their mark. Platforms such as Euronext and Xetra facilitate the trading of these products, demonstrating a growing appetite for altcoin-focused funds.

Solana Spot ETF: A Waiting Game for U.S. Investors

Despite this progress, skepticism persists in the U.S. market, primarily due to regulatory hurdles and the absence of a futures market for Solana. Historically, approvals for spot Bitcoin and Ethereum ETFs were heavily influenced by the existence of futures markets, which addressed concerns about fraud and market manipulation.

The U.S. Securities and Exchange Commission (SEC) has expressed apprehension about altcoin ETFs, citing the potential for abuse in markets without established futures mechanisms. Experts believe that introducing a Solana futures ETF could serve as a precursor to securing spot ETF approval.

Another major hurdle is Solana’s classification as a security under certain conditions. Unlike commodities such as Bitcoin or Ethereum, securities require compliance with stricter disclosure and reporting standards. This classification complicates the approval process, as ETFs linked to securities must meet heightened regulatory requirements.

The landscape could shift with changes in U.S. political and regulatory leadership. A crypto-friendly administration, coupled with a new SEC chair open to innovation, might redefine the framework governing altcoin ETFs. Analysts suggest that rising institutional interest in Solana and evolving policies could create a favorable environment for its ETF approval.

21Shares’ Diversified Crypto Staking Index ETP, A Game Changer in the Industry

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21Shares, the most significant issuer of crypto Exchange Traded Products, revealed the 21Shares Staking Basket Index ETP, the very first crypto staking index Exchange Traded Product (ETP), providing diversified income through staking, according to January 18th press release.

21Shares’ staking index, created in partnership with Vinter of Sweden, serves as a foundation for the world’s first digital-asset basket product. This Exchange-Traded Product gives exposure to staking rewards while accurately mirroring the performance of the staked digital currencies.

As per the press release, this index keeps an eye on digital coins which work on the Proof-of-Stake system, such as Binance Coin, Cardano, Cosmos, Polkadot, Solana, and Tezos. The index is updated every six months to reflect changing trends in the market, with alterations taking place in the months of March and September.

In the last year, 21Shares has revolutionized the market with its exchange-traded products, including CBTC, the most affordable Bitcoin ETP, and two risk-adjusted products, SPBTC and SPETH. Today’s launch increases the company’s portfolio.

STAKE: Diversified Crypto Staking Index ETP

Arthur Krause, Director of ETP Product at 21.co and parent company of 21Shares, explained that staking enables crypto owners to gain compensation by securing their assets. Their research indicated that investors are eager to receive returns from a diversified crypto source – even during the crypto winter.

Arthur Krause added in the statement:

In particular, we’ve heard the demand for a reliable and safe way to access StakingStaking, one of the most attractive potential return streams available in the crypto ecosystem. The 21Shares Staking Basket Index ETP does just that and will be an attractive addition to many portfolios.

Jacob Lindberg, CEO of Vinter, also commented on the launch, stating that their product meets the needs of retail and institutional investors worldwide. Lindberg continues saying that they anticipate continuing to collaborate with 21Shares as they work to introduce more inventive investment offerings that link up to the crypto realm.

However, the world’s first crypto staking index, ETP, is now trading on the BX Swiss Exchange and seeking to list on Xetra Deutsche Boerse. This launch builds upon the success of their current single-asset staking products: 21Shares Solana Staking ETP and 21Shares Tezos Staking ETP.

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Bitcoin And Ethereum Find Shelter At Singapore Exchange

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The rate of crypto adoption is undoubtedly on an upward trajectory. With prominent companies exploring the prospects of cryptocurrencies, digital assets have found shelter at stock exchanges as well. While several stock exchanges have already listed popular cryptocurrencies like Bitcoin [BTC] as well as Ethereum [ETH], many stock exchanges from across the globe have been jumping the bandwagon.

The latest stock exchange to join the list is the Singapore Exchange [SGX]. On Tuesday, the Singapore-based exchange shared a press release announcing the same.

Singapore Exchange To Bolster Crypto Adoption

As per the release, the exchange intends to roll out crypto indices namely iEdge Bitcoin Index as well as iEdge Ethereum Index under the SGX iEdge index suite. This is touted as the first of its kind and is the result of the collaboration between the Singapore Exchange along with CryptoCompare, a United Kingdom-based crypto platform.

SGX is considered one of Asia’s biggest multi-asset exchanges. The platform’s latest move could further bring in institutional investors in increased numbers. The Head of Index Services at SGX, Simon Karaban pointed out that the world was traversing into digitalization and cryptocurrencies would be of great interest to many. Speaking about the partnership he added,

“We are excited about this collaboration with CryptoCompare to offer a suite of new indices for market participants in Asia, reinforcing our endeavor to innovate and meet market needs.”

The Commercial Director of CryptoCompare, James Harris also commented on the latest collaboration and revealed that the inclusion of transparency to digital asset class was the mission of the crypto platform. He further stated,

“We are delighted to work in partnership with SGX to offer greater global access to institutional-grade digital assets products on Asia’s leading multi-asset exchange.”

Singapore Exchange wasn’t the only one to extend its support to crypto assets. Prominent Vienna-based stock exchange, Wiener Börse also joined the list.

Wiener Börse Lists A Bitcoin Product

The platform, also known as Vienna Stock Exchange revealed that it had listed Bitcoin [BTC]  and Ethereum [ETH] ETPs from the 21 Shares AG. Listing these exchange-traded products, ABTC and AETH further made the Vienna Stock Exchange the one among the two other platforms to list a Bitcoin product.

As numerous exchanges across the world recognize the potentials of the crypto market, the rate of adoption could also witness a surge in the coming days.