- Weak Interest in Solana Among Investors
- Analysis of Grayscale's Managed Assets
- Prospects of Other Crypto ETFs
Solana ETFs are unlikely to generate significant demand among investors in the United States, according to Katalin Tischhauser, head of investment research at crypto bank Sygnum.
Weak Interest in Solana Among Investors
Tischhauser noted that “minuscule” investor flows into Grayscale Solana Trust (GSOL) indicate weak demand for SOL investment vehicles among US wealth managers. “The small AUM reflects the relative name recognition of Solana versus Bitcoin,” she said.
Analysis of Grayscale's Managed Assets
Assets under management (AUM) for GSOL are less than $70 million, according to Grayscale. By comparison, Grayscale Bitcoin Trust (GBTC) managed almost $30 billion prior to its conversion to an ETF in January. Shares of GSOL trade at an unusually high premium to net asset value (NAV) — upwards of 7x as of Aug. 15.
Prospects of Other Crypto ETFs
Bitcoin and Ethereum ETFs saw record-breaking inflows in 2024 and now command nearly $63 billion in assets under management collectively. This has sparked interest from asset managers like Franklin Templeton and VanEck in launching SOL ETFs.
Katalin Tischhauser agrees that smaller issuers may make more money by launching and running these products, but it’s not going to significantly impact the crypto market.
