Grayscale Investments is developing a product that will invest exclusively and passively in Solana to capitalize on the digital currency’s meteoric rise since the start of the year.
Individual and institutional investors may participate in the Grayscale Solana Trust, the world’s biggest digital currency asset manager’s 16th investment vehicle.
It will be comparable to Grayscale’s existing single-asset investment trusts, such as those that invest in bitcoin, bitcoin cash, ethereum, and litecoin, among other cryptocurrencies. The Solana Trust requires a minimum investment of $US25,000 and charges a 2.5 percent yearly fee.
Solana, a layer-one protocol, is commonly a rival to ethereum, another smart-contract platform burdened by high costs and delayed transactions.
Its native coin, also known as Solana, is presently the fourth-largest cryptocurrency, with a market valuation of over $US64 billion and a year-to-date profit of over 10,000%.
Solana is quicker and cheaper, Grayscale CEO Michael Sonnenshein said, adding that it’s been a fantastic on-ramp for people trying to purchase NFTs, DeFi, or possible uses being developed.
“We are really seeing it as a platform where the users can learn, experiment, and build in a way that is perhaps more cost-effective than some other blockchain networks like ethereum,” he said.
After bitcoin and ethereum, the two biggest cryptocurrency assets by market size, Solana became the third asset to get a separate price tracker on the Bloomberg terminal in November. In addition, the Bloomberg Galaxy Solana Index was created in collaboration with Galaxy Digital.
Solana’s quick rise may also be credited to the backing of industry giants like Sam Bankman-Fried, the founder of crypto exchange FTX, who has previously said that the cryptocurrency has the potential for mainstream acceptance.
As of November 26, Grayscale Investments, launched in 2013, has more than $US50 ($AU70) billion in assets under management.