Grayscale Introduces Solana ETF, Competing with Bitwise in Staking Products
Grayscale Investments has launched its staking-enabled Solana ETF on NYSE Arca, bringing the total institutional exposure to Solana products to $103 million.
Grayscale Investments has recently unveiled its Solana spot exchange-traded fund (ETF) on the NYSE Arca, powered by a substantial $103 million in initial funding. This positions Grayscale as the second prominent manager of Solana ETPs in the United States.
According to a Wednesday announcement, the Grayscale Solana Trust ETF trades under the GSOL ticker and integrates staking capabilities, allowing investors to garner rewards via Solana’s proof-of-stake (PoS) network.
Inkoo Kang, Grayscale’s Senior Vice President of ETFs, remarked that this new initiative is “expanding investor choice.” Grayscale has now positioned itself among the leading managers of Solana exchange-traded products (ETPs) in the U.S. based on assets managed.
This launch comes on the heels of Bitwise’s staking Solana ETF introduction, which was initiated with $222.9 million in asset management. In contrast, Grayscale’s debut had a starting point of $102.7 million, significantly less than Bitwise.
Solana ETFs Attract Noteworthy Inflows
Data from Farside Investors reveals that the U.S. Solana ETF market currently features only the two entities, Bitwise and Grayscale. Collectively, they have presented $325.6 million in total seed capital, with Bitwise notably accumulating $69.5 million in inflows on its trading debut.
Earlier this week, Ryan Lee, Chief Analyst at Bitget, stated that after the ETF’s launch, “Solana could attract between $3–$6 billion in its first year.” He expressed that he views this approval as a groundbreaking milestone.
Furthermore, both Grayscale and Bitwise’s ETFs incorporate staking. Kristin Smith, President of the Solana Policy Institute, noted that “by participating in these staking opportunities, investors not only gain exposure but also contribute to network security, promote innovation among developers, and earn various rewards.”
Thus, Solana held within these ETFs is utilized to secure the PoS network through staking. While this offers certain risks, it also results in holders being compensated with rewards; specifically, Grayscale redistributes 77% of all staking rewards to investors, whereas Bitwise retains 28% and shares 72% with its investors.
