TL;DR
- Grayscale expects the Solana ETF to mirror the success of Bitcoin and Ethereum funds, capturing around 5% of SOL’s total supply within two years.
- Bitwise’s BSOL ETF saw $129 million in inflows in just two days, while Grayscale’s GSOL added $4 million on its first day, outperforming Litecoin and Hedera ETFs.
- The firm believes growing institutional demand for Solana confirms its potential to stand alongside BTC and ETH in the ETF market.
Grayscale projects that Solana’s ETF could replicate the success of Bitcoin and Ethereum funds in the United States.
According to Zach Pandl, the company’s Head of Research, these new instruments could capture at least 5% of Solana’s total token supply within the next two years — equivalent to more than $5 billion at current prices.
Solana ETFs See Strong Early Demand
The launch of Solana, Litecoin, and Hedera ETFs was finalized this week after delays caused by the partial U.S. government shutdown. Unlike LTC and HBAR, Solana drew immediate institutional interest. Bitwise launched its BSOL ETF on Tuesday, attracting $129 million in inflows within two days. A day later, Grayscale debuted its GSOL ETF, which recorded $4 million in its first trading session.
Pandl said Solana ETFs’ early performance confirms the market’s interest in technically efficient alternative assets with expanding ecosystems. He added that Solana’s characteristics could allow it to reach a level of relevance similar to Bitcoin and Ethereum in the ETF market. Grayscale expects institutional demand to gradually absorb a significant portion of SOL’s circulating supply.
A Well-Timed Move by Grayscale
Grayscale already has a long-standing relationship with Solana. The GSOL trust launched in 2021, accumulating over $100 million in SOL before converting into an ETF. The new structure mirrors the same model used for Grayscale’s Bitcoin and Ethereum funds in prior years.
Bloomberg analysts highlighted the rapid inflows into these new products and the market’s capacity to channel large institutional volumes into regulated investment vehicles. The arrival of Solana ETFs marks a pivotal step in diversifying the U.S. crypto investment landscape, which until now had been heavily focused on BTC and ETH funds.
For Grayscale, the strong market response validates its strategy to expand its ETF lineup and establish Solana as a key institutional asset
