Cryptocurrency Asset Manager Grayscale Investments has launched a staking enabled Solana Spot Exchange-Traded Fund (ETF), expanding institutional access to Solana exposure.
According to a Wednesday announcementThe grayscale Solana Trust ETF began trading under the GSOL ticker on the New York Stock Exchange Arca platform. The product includes staking functionality, which allows 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 “expands investor choice.” The company 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 on The Staking Solana ETF debuts on Tuesdaywhich launched with $222.9 million of assets under management. Grayscale launched with a seed of $102.7 million, less than half of bitwise.
Related: How high was Sol’s price while the first Solana ETF was alive?
Solana ETFs attract significant inflows
According to With 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.
Earlier this week, Bitget Exchange chief analyst Ryan Lee said that following the launch of the ETF, “Solana can attract between $3-$6 Billion in its first year. He said he viewed the approval as a “transformational” milestone.
Related: Solana, Litecoin, Hedera ETF to launch Tuesday: Analyst
Both the bitwise and grayscale brand ETFs feature staking. Solana Policy Institute President Kristin Smith said “By staking these products, investors not only gain exposure – they also have the opportunity to help secure the network, accelerate innovation for developers, and earn rewards.”
In other words, Solana held for ETFs are used to secure the Proof-of-Stake (POS) network through staking. This requires a certain level of risk, but in return, it pays reward holders, with 77% of all staking rewards redistributed to Grayscale’s investors. Bithod, on the other hand, maintained 28% of staking rewards and distributes 72% to investors.
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