Cryptocurrency asset manager Grayscale Investments has launched its Solana staking-enabled spot exchange-traded fund (ETF), expanding institutional exposure to Solana.
According to Wednesday announcementThe Grayscale Solana Trust ETF began trading under the symbol GSOL on the Arca platform of the New York Stock Exchange. The product includes a stake function, allowing investors to earn rewards through Solan’s proof-of-stake (PoS) network.
Grayscale’s senior vice president of ETFs, Inkoo Kang, said the new product “broadens investor choice.” The firm said it is now among the largest Solana ( SOL ) exchange-traded product (ETP) managers in the United States by assets under management.
The launch follows Tuesday’s debut of Bitwise’s equity Solana ETF, which launched with $222.9 million in assets under management. Grayscale launched with an initial valuation of $102.7 million, less than half of Bitwise’s.
Related: How high can the price of SOL go when the first Solana ETF goes live?
Solana ETFs attract significant inflows
According to According to Farside Investors, the US Solana ETF market currently includes only two products, Bitwise and Grayscale. Together, they brought in $325.6 million in seed capital, while Bitwise added $69.5 million in inflows on its first day of trading.
Earlier this week, Bitget exchange chief analyst Ryan Lee said that after the ETF’s launch, “Solana could attract between $3 billion and $6 billion in the first year.” He said he viewed the approval as a “transformative” milestone.
Related: Solana, Litecoin, Hedera ETFs to launch on Tuesday: analyst
Bitwise and Grayscale brand ETFs have a staking feature. Solana Policy Institute President Kristin Smith said that “by investing in these products, investors not only gain exposure — they also have the opportunity to help secure the network, accelerate innovation for developers, and earn rewards.”
In other words, Solana held for ETFs is used to secure a Proof of Stake (PoS) network through stake. This entails a certain level of risk, but in exchange, holders are compensated with a reward, with Grayscale redistributing 77% of all investment rewards to investors. Importantly, on the other hand, keeps 28% of shares are rewarded, and 72% are distributed to investors.
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