Grayscale Files for Solana ETF as Market Price Rises 3.62%
The crypto market has recently seen positive movement, highlighted by Grayscale's filing for a Solana ETF with NYSE. Following the announcement, Solana's market price increased by 3.62% within an hour.
Grayscale, managing $50 billion in assets, is preparing to launch its third crypto ETF on a US exchange. The Solana ETF will convert the Grayscale Solana Trust into an ETF format.
Grayscale’s Filing for Solana ETF
Grayscale submitted the 19b-4 form to the US SEC to convert the Grayscale Solana Trust (GSOL) into an ETF. The company claims to be the largest Solana fund, echoing previous efforts for Bitcoin and Ethereum ETFs.
According to the filing, Grayscale manages approximately $134.2 million in assets, representing 0.1% of all SOL tokens in circulation. However, the Grayscale Solana Trust website states that assets under management were $117 million as of December 2.
With this filing, Grayscale joins firms such as 21Shares, Canary Capital, VanEck, and Bitwise in seeking SEC approval.
The Grayscale Bitcoin and Ethereum Trusts
The Grayscale Bitcoin Trust received SEC approval to convert to an ETF in early 2024, listing on January 11 with total assets of $28.25 billion. GBTC experienced its first net daily inflow of $63.01 million on May 3 after four months, despite facing a record outflow of $642 million on some days.
Grayscale also filed to convert its Ethereum trust into an ETF, which faced challenges similar to Bitcoin. The Grayscale Ethereum Trust (ETHE) recorded the largest daily outflow of $484.11 million on its listing day, with no net inflows until December 2.
In comparison, US-based spot Bitcoin ETFs have amassed $31.06 billion, suggesting a significant gap in adoption compared to Ethereum and cautioning expectations for Solana.
Shifting Dynamics for Solana
Despite the underwhelming performance of the Grayscale Ethereum Trust, Solana shows signs of growth, with increasing network activity surpassing Ethereum in decentralized exchange volumes and other DeFi metrics.
Solana's recovery from $8 in December 2022 to a new all-time high of $264 in November 2024 highlights this trend, with a 41% price increase last month. The growing hype around Solana may drive prices higher following potential ETF approval.