In Brief:
- Grayscale Investments launched Grayscale Solana Trust yesterday.
- This will be Grayscale’s 16th crypto investment product.
- The firm’s total assets under management (AUM) were reported to be $53.5 billion.
Grayscale Solana Trust was launched on Tuesday by Grayscale Investments, the world’s largest digital currency asset manager. Grayscale’s 16th crypto investment product is a trust that will “solely and passively” invest in solana (SOL), the Solana network’s native coin.
Solana (SOL), the native token of the Solana network, a smart contract platform first conceived in a 2017 whitepaper, is the Trust’s exclusive and passive investment.
As an alternative to pure Proof-of-Stake (PoS) and Proof-of-Work (PoW) blockchains, the Solana protocol proposed the Proof-of-History (PoH) consensus mechanism.
The following is a quote from the press release: “The Trust is now open for daily subscription by eligible individual and institutional accredited investors. The Trust functions the same as Grayscale’s other single-asset investment trusts.“
Other single-asset investment products offered by Grayscale include Bitcoin (BTC), Basic Attention Token (BAT), Bitcoin Cash (BCH), Chainlink (LINK), decentraland (MANA), Ethereum (ETH), Ethereum Classic (ETC), Filecoin (FIL), Litecoin (LTC), Livepeer (LPT), Stellar Lumens (XLM), zcash (ZEC), and Horizen (ZEC) (ZEN).
Grayscale also offers two diversified funds: the Grayscale Digital Large Cap Fund and the Grayscale DeFi Fund. According to market capitalization, the former covers the top 70% of the crypto market. The latter exposes you to a number of cutting-edge DeFi (decentralised finance) protocols.
Grayscale CEO Michael Sonnenshein has commented that “for the last eight years, Grayscale has been at the forefront of offering investors efficient exposure to the ever-evolving digital currency ecosystem.” He further said, “we have had a front row seat to the mainstream acceptance and adoption of crypto, and increasingly find that investors are diversifying their exposure beyond digital assets like Bitcoin and Ethereum.“
Also, on Tuesday, the firm reported $53.5 billion in total assets under management (AUM). The bitcoin trust (GBTC) is its most popular product, with more than $37.2 billion in assets under management, followed by the Ethereum trust (ETHE), which has approximately $14.2 billion in assets under administration.
Due to increased adoption of Solana, its demand is increasing even in institutional investors and this is one of the major reasons why Solana trust is being launched everywhere. Before Grayscale, Osprey also launched the Solana Trust for private placement offering exposure to SOL.
