Solana (SOL) ETFs Show Limited Demand; Bitcoin and Ether ETFs Thrive
- WBOYOriginal
- 2024-08-17 03:20:08339browse
YEREVAN (CoinChapter.com) — Solana exchange-traded funds, Solana (SOL) ETFs, are not expected to attract significant interest from U.S. investors
Solana (SOL) exchange-traded funds (ETFs) are unlikely to garner much attention from U.S. investors, according to Katalin Tischhauser, head of investment research at Sygma. The Grayscale Solana Trust (GSOL), a private fund, now has less than $70 million in assets under management. Tischhauser points out that this small figure indicates a lack of interest in Solana-focused investment products. For context, the Grayscale Bitcoin Trust had almost $30 billion in assets before it became an ETF in January.
Solana (SOL) ETFs See Weak Demand as Bitcoin, Ether ETFs Thrive
Despite GSOL shares trading at a high premium to their net asset value (NAV), which stood at over 7x as of August 15, the demand has been weak. Tischhauser suggests that while the premium does indicate some interest, it is not substantial enough to significantly impact the broader market.
“The high premium suggests some demand, but it’s not the kind of demand that will significantly impact the market.”
Bitcoin and Ether ETFs, on the other hand, have seen much stronger demand. Together, they manage nearly $63 billion in assets, according to Morningstar. Notably, since January, Bitcoin ETFs have recorded more than three times the largest one-year inflow of any ETF in history, according to Dave LaValle, Grayscale’s global head of ETFs.
Franklin Templeton, VanEck File for SOL ETFs
Meanwhile, as other asset managers also show interest, BlackRock is not planning to launch a Solana ETF due to “very little interest” from its clients, according to a statement to CoinDesk on X.
Smaller Issuers May Profit from Solana ETFs, but Limited Demand, Minimal Impact Expected
After launching BTC and ETH ETFs, Franklin Templeton is optimistic about expanding its cryptocurrency offerings, including a potential Solana (SOL) ETF.
In a post on X, Franklin Templeton stated: “Beyond Bitcoin and Ethereum, we see other significant developments that could propel the crypto space forward.”
Moreover, Matthew Sigel, head of digital assets research at VanEck, announced on X that the firm has filed for a Solana (SOL) ETF with the U.S. Securities and Exchange Commission.
The proposed fund, named the VanEck Solana Trust, will seek to leverage Solana’s decentralized structure, high utility, and economic viability. Sigel highlighted that this marks the first SOL ETF filing in the United States.
BlackRock to Launch First Crypto ETFs in U.S., Beginning with Bitcoin, Ether Trust
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