Grayscale Launches Solana Trust Following Investors ‘Appetite’
November 30 2021 - 6:59PM
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Grayscale Investments, the largest cryptocurrency fund in the
world, announced a Solana trust, adding the growing cryptocurrency
to its list of product offerings. They have shown great interest in
Solana’s performance and see a near and long-term potential in it
because of its capability for experimentation. In a public release,
Grayscale Investments said they will be “enabling investors to gain
exposure to SOL in the form of a security while avoiding the
challenges of buying, storing, and safekeeping SOL directly.” This
will require a $25,000 minimum investment, charging Grayscale’s
standard 2.5% management fee. Grayscale CEO Michael Sonnenshein
commented to Forbes: In many investors’ minds, there’s a continued
appetite to invest in Solana, In some sense, it is a more
cost-effective blockchain [than Ethereum], and today we are seeing
over 500 decentralized apps and about 1.2 million monthly active
users on the network. When you kind of take a step back, and you
see how quickly it has been able to ramp up, it’s certainly pretty
impressive. Regarding the investor’s appetite for Solana, FTX
founder Sam Bankman-Fried is a strong supporter of the digital
asset, giving a constant public endorsement that has become a key
point of its current visibility. Bankman-Fried has shared his view
on Solana being better than Ethereum given its lower fees and
possibilities of use and recently claimed it has the potential of
becoming the next Bitcoin by mass adoption level. Related Reading
| Solana Could Become The Next Bitcoin, According To FTX’s Sam
Bankman-Fried With this addition, Solana becomes the 16th offering
in Grayscale’s product line. They also provide exposure to Bitcoin
(BTC), Basic Attention Token (BAT), Bitcoin Cash (BCH), Chainlink
(LINK), Decentraland (MANA), Ethereum (ETH), Ethereum Classic
(ETC), Filecoin (FIL), Litecoin (LTC), Livepeer (LPT), Stellar
Lumens (XLM), Zcash (ZEC), and Horizen (ZEN). Solana, the “Ethereum
killer”, has had a great year overall, being in the investor’s
spotlight, rallying to new all-time highs, showing massive
adoption. It has aggressively dominated the terrain of funds held
in cryptocurrency wallets. The cryptocurrency managed to climb to
the 4th position of largest cryptocurrencies by market
capitalization, with a value of over $70 billion. The inclusion of
Grayscale’s portfolio promises more visibility around institutional
and individual accredited investors. Related Reading | Solana
Tops Cardano, Ethereum To Become The Most Staked Cryptocurrency
Grayscale Sees Potential In Solana Despite the issues Solana has
faced -such as the network’s 17-hour outage- and being more
centralized than its close competitors, many call for its staking
token SOL to hit $300 next, after having rallied close to $217,50
recently. Solana also dominates DeFi services and NFT minting, and
its native token SOL became one of the best-performing assets of
the year. Solana Lab’s CEO, Anatoly Yakovenko, recently commented
to The Block that the chances of the network going down again don’t
really matter “in terms of safety to funds in the state”, not
worried about the possibility of it happening again as he claims
the users have nothing to worry about if they do not care about the
time the transactions could take during an outage. Sonnenshein
shared that Grayscale sees near and long-term potential in Solana,
not only seeing the growing interest from important investors but
its fields of use for blockchain technology. What’s been
interesting about Solana is that it gives users the ability to
learn, experiment, and build. They generally have more budget to
experiment on the protocol than some other more established
blockchains like Ethereum, because of lower transaction fees.
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