Grayscale’s Proposed Conversion of GSOL to a Spot ETF on NYSE Arca Marks a Major Crypto Milestone

In a move that could redefine institutional access to altcoins, Grayscale Investments has filed paperwork to convert its existing trust into a spot Solana ETF, paving the way for shares to trade under ticker GSOL on NYSE Arca. 

The vehicle in question is the Grayscale Solana Trust, which currently provides indirect exposure to Solana (SOL) through an over-the-counter trust structure. According to the registration statement, the trust intends to rename itself the “Grayscale Solana Trust ETF” and list on NYSE Arca under the same ticker, GSOL. 

What the Filing Means and How the Product Works

Grayscale’s filing to the U.S. Securities and Exchange Commission (SEC) outlines several key features of this proposed product:

• The underlying asset is SOL, the native token of the Solana network. The trust’s objective is for the value of each share to reflect the value of the SOL held by the trust, minus fees and liabilities. 

• The shares currently trade on OTC markets under GSOL; the conversion to an ETF structure and listing on NYSE Arca is intended to transition the product into a regulated exchange-traded vehicle. 

• A major caveat: the filing stipulates that the trust will not engage in staking that is, it will not use the Solana holdings to earn additional SOL or lock them up for validation rewards in the Solana proof-of-stake network. 

In short, investors would gain exposure to Solana’s price movements, but initially without participating in the network staking rewards.

Why this is important for investors and for crypto markets

• This is among the most advanced efforts to bring a regulated spot Solana ETF to the U.S., and if approved it would signal a broader acceptance of altcoin-based ETFs beyond Bitcoin and Ethereum. 

• A listing on NYSE Arca opens up greater visibility and accessibility for retail and institutional investors who prefer regulated exchange-traded instruments over OTC structures.

• For the Solana network, such a product could boost institutional demand and potentially reduce the premium/discount inefficiencies seen in trust structures.

• However, the exclusion of staking means the product gives price exposure only  no yield from participating in Solana’s validation mechanism which may limit its appeal compared to self-custodied staking of SOL.

Regulatory and market hurdles to watch

While the filing represents progress, several key issues remain:

• The SEC has not yet approved the conversion of GSOL into a full spot ETF listing on NYSE Arca. The proposed rule-change filing under SR-NYSEArca-2025-06 remains marked as withdrawn as of Sept 29 2025, meaning regulatory action is still pending. 

• The decision to exclude staking was likely a strategic move to align with SEC precedent and minimise regulatory risk  as earlier filings for staking-enabled products have faced greater regulatory scrutiny. 

• If staking becomes permissible in the future, the trust may revisit adding it  but as of now, the lack of yield may influence investor uptake. 

Given these factors, the success of GSOL’s conversion hinges on clear regulatory approval, market demand, and efficient arbitrage mechanics to keep the share price aligned with SOL’s underlying value.

What investors should consider

• Exposure only: GSOL would provide exposure to Solana’s price movements but not to staking revenue.

• Regulatory risk: Approval is not guaranteed; market expectations suggest uncertainty remains. 

• Liquidity and premiums: As with other crypto-trust structures, shares may trade at a premium or discount to NAV (net asset value). The transition to an ETF may help but does not eliminate that possibility. 

• Alternative access: Investors who wish to stake SOL directly or participate in network yields may prefer self-custody or staking protocols over this product initially.

FAQs

Q1: What is the proposed GSOL ETF?
A1: The proposed ETF is the conversion of Grayscale’s current Solana trust into a spot ETF listed on NYSE Arca under the ticker GSOL, designed to give investors indirect exposure to Solana (SOL).

Q2: Will the GSOL ETF offer staking rewards?
A2: No  according to the filing, the trust will not engage in staking or use its SOL holdings to earn additional tokens or staking rewards.

Q3: When will GSOL list on NYSE Arca?
A3: A listing is proposed, but as of now, regulatory approval from the SEC is still pending, and no definitive launch date has been confirmed.

Q4: How is GSOL different from directly buying SOL?
A4: GSOL would allow access through a regulated exchange format (once listed) without the need to manage wallet keys or custody solutions directly. However, it lacks staking rewards and may trade differently from direct SOL holdings.

Q5: What are the risks of investing in GSOL?
A5: Key risks include regulatory approval failure or delay, potential liquidity issues or trading premiums/discounts, and absence of staking income which may reduce yield compared to direct SOL investment.

Q6: Why is the GSOL filing significant for the crypto market?
A6: It represents one of the first major efforts to bring an altcoin beyond Bitcoin or Ethereum into a U.S. regulated spot ETF format, potentially opening the door to wider crypto-ETF adoption.