ARK Invest Adds Staked Solana to ETFs, First US-Listed Exposure

ARK Invest has expanded the portfolios of two of its exchange-traded funds (ETFs) to include exposure to staked Solana (SOL). This move was announced in a client email sent by the asset manager. As of April 21, the ARK Next Generation Internet ETF (ARKW) and the ARK Fintech Innovation ETF (ARKF) now hold shares of 3iQ’s Solana Staking ETF (SOLQ), a Canadian ETF that holds staked SOL.

These two ARK funds are designed to provide broad exposure to emerging technologies. Their portfolios include a mix of technology stocks, such as crypto-focused companies like Coinbase, Block, and Robinhood, as well as spot cryptocurrencies. By adding the SOL ETF shares, ARKW and ARKF have become the first US-listed ETFs to gain exposure to Solana.

In March, Volatility Shares launched two ETFs that offer exposure to SOL using financial derivatives. However, spot Solana ETFs are still awaiting approval by US regulators. The recent listing of Solana futures on the Chicago Mercantile Exchange (CME) suggests that US SOL ETF listings may be imminent.

Last week, 3iQ launched its Solana ETF in Canada following approval by the Ontario Securities Commission (OSC), Canada’s largest securities regulator. Solana is the second-most popular blockchain network after Ethereum, with a total value locked exceeding $7 billion, compared to approximately $45 billion for the Ethereum network.

The US Securities and Exchange Commission (SEC) authorized spot Ether ETFs to trade in the United States in July 2024. In July, ARK partnered with 21Shares, a crypto-focused fund issuer, to launch ARK 21Shares Bitcoin ETF (ARKB), a spot Bitcoin (BTC) fund with nearly $4 billion in net assets as of April 21. ARK also partnered with 21Shares on an Ether ETF but dissolved the partnership in June, shortly before the fund launched under 21Shares’ branding.

This strategic move by ARK Invest to include staked Solana in its ETFs reflects a growing interest in the Solana blockchain and its potential for innovation in the technology sector. By offering exposure to staked SOL, ARK is providing investors with an opportunity to participate in the growth of the Solana ecosystem while diversifying their portfolios with emerging technologies.

The addition of staked Solana to ARKW and ARKF aligns with the funds' objectives of investing in disruptive technologies and innovative companies. This move is likely to attract investors who are interested in gaining exposure to the Solana blockchain and its ecosystem, as well as those who are looking to diversify their portfolios with emerging technologies.

Overall, ARK Invest's decision to include staked Solana in its ETFs is a significant development in the cryptocurrency and technology sectors. It demonstrates the growing interest in the Solana blockchain and its potential for innovation, as well as the increasing acceptance of cryptocurrencies as a legitimate asset class.