TL;DR
- Solana (SOL) might rally again: SOL, despite being in the red currently, could be primed for another breakout. This comes after an impressive year where its price surged by over 1500%, propelling it to the number five spot among cryptocurrencies.
- Grayscale Solana Trust (GSOL) trades at a hefty premium: GSOL is currently trading at a staggering 620% premium over its Net Asset Value (NAV). This surge coincides with the recent wave of spot Solana ETF applications filed in the United States and Canada.
- Spot Solana ETF approval in the U.S. and Canada faces challenges: While excitement is building around the possibility of Solana surpassing Bitcoin and Ethereum in gains, securing approval for spot Solana ETFs in the US and Canada remains an uphill battle.
Solana (SOL), the native currency of the Solana ecosystem, might be poised for another breakout despite currently trading in the red. This comes after a stellar year that saw SOL surge by over 1500%, propelling it to the number five spot in the crypto rankings, surpassing established players like XRP, Cardano, and even Dogecoin.
GSOL Trading At A 620% Premium
Adding fuel to the fire, the Grayscale Solana Trust (GSOL) is currently trading at a staggering 620% premium over its Net Asset Value (NAV). According to Jamie Coutts, Chief Crypto Analyst at Real Vision, this surge coincides with the recent wave of spot Solana ETF applications filed in the United States and Canada.
For the uninitiated, the GSOL NAV represents the total value of all SOL held by the trust divided by the number of outstanding GSOL shares. When GSOL trades above NAV, it indicates a premium, meaning investors are willing to pay more for the underlying asset, SOL in this case.
The scarcity of GSOL seems to be a major factor contributing to its premium. While SOL can be freely traded on platforms such as Binance or Coinbase, GSOL has a limited supply of shares.
This scarcity, coupled with institutional anticipation of a price surge in the coming months, could be pushing investors towards GSOL as a way to gain exposure to SOL, thereby inflating the premium.
Crypto Community Awaits On Spot Solana (SOL) ETF Applications in the U.S. and Canada
Excitement is brewing around the possibility of Solana potentially surpassing Bitcoin and Ethereum in terms of gains in the coming months, replicating its impressive performance from Q1 2024.
This anticipation stems from the recent applications filed by VanEck and 21Shares with the US Securities and Exchange Commission (SEC) for spot Solana ETFs in late June.
VanEck, through its Head of Digital Assets Research, Matthew Sigel, highlighted Solana’s decentralization, utility, and economic viability as key factors behind their proposed ETF. Sigel further argued that SOL qualifies as a commodity similar to Bitcoin.
Securing approval from the SEC for SOL is proving to be quite challenging, especially since there is no established futures market for it like Bitcoin and Ethereum have on the CME. To make matters worse, the SEC has even listed SOL as an unregistered security during their legal battles with Binance and Coinbase.
