Grayscale Investments (the largest crypto fund in the globe) announced that it has established a Solana trust. It will add the cryptocurrency to their portfolio. 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.
Forbes interviewed Michael Sonnenshein, Grayscale CEO.
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]Today we see over 500 decentralized applications and approximately 1.2million monthly active users. 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.
According to Bankman-Fried, Solana is better than Ethereum due to its lower fees and potential use. Recently, he claimed that it could be the next Bitcoin through mass adoption.
Similar 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. You will also be exposed to Bitcoin (BTC), Bitcoin Cash(BCH), Chainlink [LINK], Decentraland [MANA], Ethereum (ETH), Ethereum classic (ETC), Filecoin/FIL), Litecoin (LTC), Livepeer (“LPT”), Stellar Lumens’ (XLM), Zcash („ZEC“), 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. The cryptocurrency market is dominated by it.
This cryptocurrency managed to reach the fourth position in market capitalization for largest cryptocurrency, and has a total value of $70 billion. The inclusion of Grayscale’s portfolio promises more visibility around institutional and individual accredited investors.
Similar Reading| Solana Tops Ethereum, Cardano To Be The Most Stoked 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. DeFi services are dominated by Solana, as well as NFT minting. Solana’s native token SOL is one of its best-performing assets.
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 said that Grayscale is seeing near- and long-term value in Solana. Not only are they excited by the interest shown them by important investors, but also because of its use cases for blockchain technology.
What’s been interesting about Solana is that it gives users the ability to learn, experiment, and build. Due to lower transaction fees they are able to spend more on Solana, users have greater access to the protocol.