Grayscale Launch Solana Trust With $9.5M AUM As Interest Grows
Grayscale Investments has launched a solana trust. In total the investment firm now has $54 billion in total assets under management (AUM). The new trust, which is the company’s 16th crypto investment product, will solely invest in solana (SOL).
Grayscale Investments, the largest cryptocurrency fund in the world, announced a Solana trust, adding the growing cryptocurrency to its list of product offerings. They have shown great interest in Solana’s performance and see a near and long-term potential in it because of its capability for experimentation.
In a press release, the company said they will be “enabling investors to gain exposure to SOL in the form of a security while avoiding the challenges of buying, storing, and safekeeping SOL directly.” This will require a $25,000 minimum investment, charging Grayscale’s standard 2.5% management fee.
The new trust, which will “solely and passively” invest in solana (SOL), the native token of the Solana network, is Grayscale’s 16th crypto investment product.
The announcement detailed:
“The trust is now open for daily subscription by eligible individual and institutional accredited investors. The trust functions the same as Grayscale’s other single-asset investment trusts.”
Grayscale’s other single-asset investment products provide exposure to bitcoin (BTC), basic attention token (BAT), bitcoin cash (BCH), chainlink (LINK), decentraland (MANA), ethereum (ETH), ethereum classic (ETC), filecoin (FIL), litecoin (LTC), livepeer (LPT), stellar lumens (XLM), zcash (ZEC), and horizen (ZEN).
In addition, Grayscale offers diversified products: Grayscale Digital Large Cap Fund and Grayscale Defi Fund. The former provides coverage of the upper 70% of the crypto market by market capitalization. The latter provides exposure to a selection of industry-leading defi (decentralized finance) protocols.
Grayscale CEO Michael Sonnenshein commented:
“We have had a front row seat to the mainstream acceptance and adoption of crypto, and increasingly find that investors are diversifying their exposure beyond digital assets like bitcoin and ethereum.”
The company reported $53.5 billion in total assets under management (AUM) on Tuesday. Its most popular product is the bitcoin trust (GBTC) which has more than $37.2 billion in assets under management, followed by the ethereum trust (ETHE) with an AUM of almost $14.2 billion.
The Solana network and its native SOL cryptocurrency have grown significantly in 2021. The price has gone from $1.84 at the beginning of the year to more than $200. In fact, SOL outperformed Bitcoin and Ethereum in October, increasing 41.9% for the month.
Rapidly growing interest in DeFi and NFTs paired with high transaction fees on Ethereum seems to have pushed a lot of trading volume onto the Solana network.
