Grayscale debuts Solana ETF, joining Bitwise in SOL staking ETF race

Cryptocurrency asset manager Grayscale Investments has launched its staking-enabled Solana spot exchange-traded fund (ETF), expanding institutional access to Solana exposure.

According to a Wednesday announcement, the Grayscale Solana Trust ETF began trading under the GSOL ticker on the New York Stock Exchange Arca platform. The product includes staking functionality, allowing investors to earn rewards through Solana’s proof-of-stake (PoS) network.

Grayscale’s senior vice president of ETFs, Inkoo Kang, said the new product is “expanding 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 the debut of Bitwise’s staking Solana ETF on Tuesday, which launched with $222.9 million of assets under management. Grayscale launched with a seed of $102.7 million, less than half of Bitwise’s.

Related: How high can SOL’s price go as the first Solana ETF goes live?

Solana ETFs attract significant inflows

According to data from Farside Investors, the US Solana ETF market currently includes only two products, those from Bitwise and Grayscale. Together, they introduced $325.6 million in seed capital, while Bitwise added $69.5 million in inflows on its first day of trading.

Solana ETF data. Source: Farside Investors

Earlier this week, Bitget exchange’s chief analyst Ryan Lee said that following the launch of the ETF, “Solana could attract between $3–$6 billion in its first year.” He said that he viewed the approval as a “transformative” milestone.

Related: Solana, Litecoin, Hedera ETFs to launch Tuesday: Analyst

Both the Bitwise and Grayscale brand ETFs feature staking. Solana Policy Institute president Kristin Smith said that “through staking in these products, investors aren’t just gaining exposure – they also have the opportunity to help secure the network, accelerate innovation for developers, and earn rewards.”

In other words, the Solana held for the ETFs is used to secure the proof-of-stake (PoS) network through staking. This entails a certain level of risk, but in exchange, it compensates holders with rewards, with 77% of all staking rewards being redistributed to investors by Grayscale. Bitwise, on the other hand, retains 28% of the staking rewards and distributes 72% to investors.

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