Fun

Solana ETFs will not see significant demand — Sygnum research head

News Feed - 2024-08-16 12:08:19

Alex O’Donnell8 hours agoSolana ETFs will not see significant demand — Sygnum research headLow uptake of Grayscale’s Solana fund is an early indicator, she said.1600 Total views12 Total sharesListen to article 0:00NewsOwn this piece of crypto historyCollect this article as NFTCOINTELEGRAPH IN YOUR SOCIAL FEEDFollow ourSubscribe onSolana exchange-traded funds (ETFs) will not see significant demand among United States investors, according to Katalin Tischhauser, head of investment research at crypto bank Sygnum.


Tischhauser told Cointelegraph that “minuscule” investor flows into the Grayscale Solana Trust (GSOL) — asset manager Grayscale’s private SOL (SOL) fund — indicate weak demand for SOL investment vehicles among US wealth managers.


GSOL’s assets under management (AUM) are less than $70 million, according to Grayscale. By comparison, the Grayscale Bitcoin Trust managed almost $30 billion prior to its conversion to an ETF in January, according to Tischhauser.


“The small AUM reflects the relative name recognition of Solana versus Bitcoin,” Tischhauser said.


Related:Crypto ETFs will expand to new asset types, indexes — Grayscale executive


Shares of GSOL trade at an unusually high premium to net asset value (NAV) — upward of 7x as of Aug. 15. NAV is a measure of the underlying value of SOL per share in the fund.


“The high premium suggests some demand, but it’s not the kind of demand that will significantly impact the market,” according to Tischhauser.BTC and ETH dominate crypto by market capitalization. Source: CoinGecko


Bitcoin (BTC) and Ether (ETH) ETFs saw record-breaking inflows in 2024 and now command nearly $63 billion in AUM collectively, according to data from Morningstar.


Since launching in January, BTC ETFs have seen “more than three times the largest one-year inflow of any ETF ever in the history of ETFs,” said Dave LaValle, Grayscale’s global head of ETFs. “So, we’re talking about massive, massive adoption.”


This has sparked a flurry of speculation about which crypto assets are next up for an ETF launch. Asset managers including Franklin Templeton, VanEck, and 21Shares have all expressed an interest in launching SOL ETFs.


BlackRock, the largest ETF manager by AUM, has no plans to launch a SOL ETF, citing “very little interest” from its clients.


“Smaller issuers may make more money than their expenses by launching and running these products,” Tischhauser said. “But it’s not going to be significant for the crypto market—it’s not going to be exciting.”


Magazine:NFT Creator: ThankYouX hits Sotheby’s as his career *literally* blasts into space# Bitcoin# Cryptocurrencies# Law# Business# Ethereum# Technology# Investments# SEC# Adoption# Markets# United States# Tokens# Regulation# Bitcoin ETFAdd reaction

News Feed

Binance Enters Popular Venezuelan Dollar Indexes as Currency Plunges 10% in One Week
Binance Enters Popular Venezuelan Dollar Indexes as Currency Plunges 10% in One Week Binance, the leading P2P exchange in Venezuela, is now present in several po
Cryptocurrency Theft Remains Key Revenue Source for North Korea, UN Report Says
Cryptocurrency Theft Remains Key Revenue Source for North Korea, UN Report Says Cyberattacks on cryptocurrency exchanges have been a major source of funds for North Korea in the pa
Bitcoin Scarcity May Spark Explosive Surge, Bank Study Shows
Reason to trust Strict editorial policy that focuses on accuracy, relevance, and impartiality Created by industry experts and meticulously reviewed The highest standards in reporting and pu
New Ukrainian Law Says ‘Virtual Assets’ Can Be Used for Payments
New Ukrainian Law Says ‘Virtual Assets’ Can Be Used for Payments The Verkhovna Rada, Ukraine’s legislature, has approved amendments that introduce legal terms and defin
Yashu Gola10 hours agoPEPE price to zero? Pepecoin rug pull allegations put memecoin at riskSome Pepecoin hopefuls eye a massive PEPE price rebound, with on-chain data showing strong accumulation in recent days.1390 Tota
Billionaire Tim Draper Urges Sri Lanka to Adopt Bitcoin — Central Bank Says ‘We Don’t Want to Make the Crisis Worse’
Billionaire Tim Draper Urges Sri Lanka to Adopt Bitcoin — Central Bank Says "We Don"t Want to Make the Crisis Worse" Billionaire investor and venture capitalist Tim Draper has re
Brian Quarmby3 hours agoVictim of 90 ETH exploit set to claw funds back after hacker was blacklistedThe hacker’s wallet, with over $100,000 worth of USDT, was blacklisted and frozen, while the victim had been drained o
The $62B Stablecoin Giant Tether Publishes Assurance Report Reviewed by Auditor Moore Cayman
The $62B Stablecoin Giant Tether Publishes Assurance Report Reviewed by Auditor Moore Cayman Tether Limited has released an assurance report reviewed by Moore Ca
Indian Commerce Giant Flipkart Will Allow Customers to Purchase Items in the Metaverse
Indian Commerce Giant Flipkart Will Allow Customers to Purchase Items in the Metaverse Flipkart, the Walmart-backed Indian e-commerce giant, has launched a pilot to allow its custo
3 signs that Bitcoin price is not ready to make a new all-time high
Marcel Pechman2 hours ago3 signs that Bitcoin price is not ready to make a new all-time highChina-focused stablecoin data, retail investor participation and skeptical BTC derivatives markets are all signs that Bitcoin pr
XRP Active Addresses Hit Highest Level Since April 2023 – Will Price Follow?
Reason to trust Strict editorial policy that focuses on accuracy, relevance, and impartiality Created by industry experts and meticulously reviewed The highest standards in reporting and pu
The Card Battle Heats Up in Latam, as Ripio and Bitso Both Announce Crypto-Enabled Cards
The Card Battle Heats Up in Latam, as Ripio and Bitso Both Announce Crypto-Enabled Cards Cryptocurrency debit and credit card offerings in Latam are thriving, as two exchanges in t