Grayscale Files for Solana ETF

Asset management firm Grayscale has filed with the New York Stock Exchange (NYSE) for a Solana exchange-traded fund (ETF).

If approved, the Grayscale Solana Trust (GSOL) would be converted into a publicly traded ETF, and the first spot Solana ETF in the United States would be birthed.

Grayscale’s GSOL fund currently boasts $117 million in assets under management (AUM), making it the firm’s third largest single asset crypto fund behind its Litecoin Trust with $273 million, and its Ethereum Classic Trust with $380 million.

The filing makes Grayscale the fourth applicant for a Solana ETF alongside VanEck, 21Shares, Bitwise, and Canary.

SOL quickly reacted to the news, jumping 3.5% upon the filing, and is changing hands for $237.

Grayscale also operates Bitcoin and Ethereum spot ETFs under the tickers GBTC and ETHE. However, Grayscale’s net flows on both GBTC and ETHE are negative, as Grayscale Trust Investors typically purchase exposure at a discount.

In Aug. 2022, GBTC traded as low as a 33% discount from the spot BTC price, allowing investors to purchase Bitcoin exposure at the equivalent of $13,500 BTC and then offload at spot prices once the ETFs began trading in January 2024.