Grayscale Solana ETF Launches on NYSE Arca with Staking Mechanism
Grayscale Investments has introduced its Grayscale Solana Trust (GSOL) on the NYSE Arca exchange, marking a significant milestone in the expansion of crypto exchange-traded products (ETPs). The GSOL aims to pass on 77% of the net staking rewards from its underlying Solana (SOL) holdings to investors, directly incorporating this value into the fund’s net asset value. 
The launch of GSOL comes at a time when the crypto market is witnessing a surge in the introduction of new ETPs, with Bitwise’s Solana ETF debuting just a day prior. This development signals a growing interest in cryptocurrencies beyond the dominant Bitcoin and Ethereum markets. Grayscale’s GSOL started with a substantial foundation, holding 525,387 SOL tokens, which translates to assets under management of over $102 million before its stock market debut.
Key Features of Grayscale Solana ETF
The Grayscale Solana Trust is the company’s first equity risk ETF on the NYSE Arca and features a staking mechanism, allowing investors to benefit from the rewards generated by the underlying SOL holdings. According to Grayscale, nearly 75% of its total SOL has been deployed to generate rewards for investors. The ETF’s launch is part of a broader trend of crypto ETPs expanding beyond Bitcoin and Ethereum, with other recent launches including a Litecoin ETF and an HBAR ETF on Nasdaq.
Grayscale’s senior vice president, ETFs, Inkoo Kang, noted that “Bitcoin and Ethereum ETPs were just the beginning, and with GSOL we are expanding investor choice, supported by the scale, education and operational infrastructure that advisors and institutions expect.” The company’s significant footprint in the digital asset management space, with total assets under management of approximately $35 billion as of September 30, is expected to contribute to the growth of the GSOL.
Market Reception and Competition
The first-day trading volume numbers for the recently launched crypto ETPs paint a clear picture of investor interest. Bitwise’s Solana ETF (BSOL) led the way with a hefty $56 million, while Canary’s HBAR product achieved $8 million and its Litecoin ETF saw volume of $1 million, according to Bloomberg senior ETF analyst Eric Balchunas. The GSOL’s launch on NYSE Arca is expected to further diversify the crypto ETP landscape, providing investors with more options for exposure to the Solana ecosystem.
For more information on the Grayscale Solana ETF and its staking mechanism, visit the original article on Crypto.news. The launch of GSOL marks an exciting development in the crypto space, and investors can expect to see more innovative products and services emerging in the coming months.
