Featured News Headlines
Solana ETFs Poised to Rival Bitcoin and Ethereum, Says Grayscale
Solana ETFs – The launch of Solana exchange-traded funds (ETFs) could mark the next major milestone in the crypto investment landscape, according to Zach Pandl, Head of Research at Grayscale Investments. Pandl believes that within one to two years, roughly 5% of all Solana tokens could be held in regulated exchange-traded structures—an amount valued at over $5 billion at today’s prices.
A New Chapter for Crypto-Based Investment Products
The prediction follows the debut of Grayscale Solana ETF (GSOL) and Bitwise Solana ETF (BSOL), both launched this week. Analysts described GSOL’s early performance as “strong,” despite entering a competitive ETF market. Pandl expects Solana ETFs to become multi-billion-dollar businesses as investor interest widens beyond Bitcoin and Ethereum.
Exchange-traded products (ETPs) allow investors to gain crypto exposure through traditional accounts, offering an easier entry into the digital asset class without managing private keys. According to the Investment Company Institute, U.S.-listed ETFs managed over $10 trillion in assets by the end of 2024, representing 26% of all managed funds.
Regulatory Challenges and Market Expansion
Despite growing enthusiasm, some institutions remain cautious. Charles Schwab recently warned that crypto assets remain lightly regulated, even as the U.S. Securities and Exchange Commission (SEC) continues approving new ETPs.
The GSOL fund has evolved from a private trust launched in 2021 into an ETF, enhancing liquidity and pricing transparency while eliminating the steep premiums and discounts typical of closed-end crypto trusts.
Staking Rewards: A Game Changer
Unlike Bitcoin ETFs, Solana ETFs can offer staking rewards, providing investors with potential yields from the network’s proof-of-stake system. GSOL plans to distribute 77% of staking rewards to its holders—an innovation Pandl calls a “game changer for crypto demand.”
As new products emerge, including upcoming Hedera and Litecoin ETFs, Pandl expects the market to shift toward diversified crypto ETPs, enabling investors to gain broader exposure across multiple digital assets.
“Each blockchain has its own lane,” Pandl said. “Solana and Ethereum will likely coexist, offering distinct roles within a balanced crypto strategy.”
