Sygnum Predicts Limited Demand for Solana ETFs Among US Investors
Katalin Tischhauser, head of investment research at Sygnum crypto bank, believes that Solana exchange-traded funds (ETFs) are unlikely to attract significant interest from US investors. Tischhauser highlighted the minimal investor activity in Grayscale's Solana Trust (GSOL) as an indicator of weak demand for Solana investment vehicles in the US.
Grayscale's GSOL has assets under management (AUM) totaling less than $70 million. In stark contrast, the Grayscale Bitcoin Trust managed nearly $30 billion before its conversion to an ETF earlier this year. Tischhauser explained that this disparity underscores Solana's lower recognition compared to Bitcoin.
Shares of GSOL are trading at a steep premium to their net asset value (NAV), exceeding seven times the NAV as of August 15. While this premium suggests some level of demand, Tischhauser noted that it is insufficient to significantly impact the market.
In the broader crypto landscape, Bitcoin and Ethereum ETFs have experienced record-breaking inflows in 2024, collectively reaching nearly $63 billion in AUM. Since their launch in January, Bitcoin ETFs have achieved unprecedented inflows, with Dave LaValle, Grayscale’s global head of ETFs, describing the adoption as "massive."
This surge in interest has fueled speculation about the next crypto assets poised for ETF launches. Firms like Franklin Templeton, VanEck, and 21Shares have expressed interest in introducing Solana ETFs. However, BlackRock, the largest ETF manager by AUM, currently has no plans for a Solana ETF, citing limited client interest.
