Fund Revisions Reflect Regulatory Sensitivity as Firm Waits for SEC Green Light
Grayscale Investments is revisiting its plans for a Solana-based exchange-traded fund (ETF), making key adjustments that reflect both regulatory caution and evolving product strategy. In a newly filed amendment with the U.S. Securities and Exchange Commission (SEC), the firm announced a name change for its proposed product and officially dropped the option for staking rewards.
Rebranding in Progress, Approval Still Pending
According to the updated registration statement, the Grayscale Solana Trust will now be renamed to the Grayscale Solana Trust ETF, signaling a refined approach toward listing the fund as a publicly traded product. This change is part of Grayscale’s ongoing registration process, which is still under review by the SEC.
The firm’s initial application to list the ETF on NYSE Arca, filed on December 3, 2024, under Rule 19b-4 of the Securities Exchange Act of 1934, remains in limbo. Although acknowledged by the SEC, the proposal has not yet received formal approval or denial. Grayscale emphasized that the ETF will not be launched unless and until regulatory clearance is granted.
No Staking for Now
One of the most notable updates in the revised filing is the removal of staking functionality. This means that investors in the ETF will not receive staking rewards from Solana’s native SOL tokens, nor will the trust engage in any staking-related activity.
Grayscale clarified that neither the trust itself nor any of its affiliates will participate in Solana’s proof-of-stake (PoS) validation process, nor will they seek to generate yield or income from the tokens held. Additionally, there is no guarantee that staking will be introduced into the fund structure at any point in the future.
This decision likely reflects the current regulatory uncertainty around staking, particularly given the SEC’s past enforcement actions and scrutiny of yield-generating crypto products.
Regulatory Adaptation and Investor Strategy
The changes to the proposed ETF demonstrate Grayscale’s strategy to navigate evolving SEC guidelines while still appealing to institutional and retail investors interested in Solana. By stripping out staking—a feature that may raise compliance questions—the firm appears to be reducing regulatory friction and increasing its chances of eventual approval.
This cautious approach mirrors Grayscale’s broader efforts to bring digital asset products into the mainstream financial ecosystem, with transparency and compliance at the forefront.
As the crypto ETF race continues to evolve, all eyes will be on whether the SEC moves forward with Grayscale’s revised application—and what that could mean for the future of non-Bitcoin crypto ETFs.
Disclaimer: This article is for informational purposes only. It is not financial advice. Always do your own research (DYOR) before investing in cryptocurrencies.
Andrej is an experienced content and copywriter who’s been creating impactful, engaging content since 2022. Though he’s worked across various of industries, he specializes in Crypto, Web3, and SaaS. From in-depth blog posts to high-converting web copy, he combines strategic thinking with a natural flair for storytelling to deliver content that not only informs but also resonates with readers
