Solana exchange-traded funds (ETFs) are unlikely to attract substantial interest from U.S. investors, according to Katalin Tischhauser, head of investment research at Sygnum, a crypto bank. Tischhauser pointed to the “miniscule” investor flows into Grayscale Solana Trust (GSOL) — a private SOL fund managed by Grayscale — as an indication of the low demand for SOL investment products among U.S. wealth managers.
Grayscale reports that assets under management (AUM) for GSOL remain below $70 million. In contrast, Grayscale Bitcoin Trust (GBTC) managed nearly $30 billion in AUM before its conversion to an ETF earlier this year, as noted by Tischhauser.
“The small AUM reflects the relative name recognition of Solana versus Bitcoin,” Tischhauser said.
Currently, shares of GSOL trade at a significantly high premium to their net asset value (NAV) — more than seven times as of August 15. NAV represents the underlying value of SOL per share within the fund.
“The high premium suggests some demand, but it’s not the kind of demand that will significantly impact the market,” Tischhauser observed.
In 2024, ETFs experienced record-breaking inflows, with assets under management now totaling nearly $63 billion collectively, according to data from Morningstar Inc.
Since the launch of BTC ETFs in January, they have seen “more than three times the largest one-year inflow of any ETF ever in the history of ETFs,” said Dave LaValle, Grayscale’s global head of ETFs. “So, we’re talking about massive, massive adoption.”
This surge has led to widespread speculation regarding which crypto assets might be next for an ETF launch. Asset managers such as Franklin Templeton, VanEck, and 21Shares have all shown interest in launching SOL ETFs.
However, BlackRock, the largest ETF manager by AUM, has no plans to introduce a SOL ETF, citing “very little interest” from its clients.
“Smaller issuers may make more money than their expenses by launching and running these products,” Tischhauser said. “But it’s not going to be significant for the crypto market—it’s not going to be exciting.”
