According to data from Coinglass, Grayscale’s Solana Trust (GSOL) has experienced an unprecedented rise. Because the premium reached a surprising rate of 869.29%. GSOL’s market price rose to $202 on November 10, more than doubling in a week, reflecting an 800 percent premium over the Solana token’s spot price of $59 on the same day. Here are the details…
Solana and these altcoins are in the focus of institutional investors
Designed to provide institutional investors with exposure to Solana, the trust holds 0.38 SOL per share and prices each SOL at $525. This increase in premium highlights significant appetite from institutional investors looking to capitalize on the growing popularity of the Solana Blockchain. Notably, Grayscale Filecoin Trust (FILG) also experienced a premium increase of 901.67%. While FIL is traded at $4.6 in the spot market, FILG shares corresponding to 0.93 FIL each are priced at $41.97. Coinglass data also shows significant premiums for other cryptocurrencies, including Stellar (XLM), Decentraland (MANA), Chainlink (LINK), and Basic Attention Token (BAT), with changes of 161%, 308%, 250%, and 112%, respectively. shows increases.
Grayscale, a major player in the cryptocurrency investment space, has a total of $29.6 billion in assets under management. The company’s flagship product, Grayscale Bitcoin Trust (GBTC), is trading at $29.97 per share, with each GBTC equivalent to 0.00089 Bitcoin. Despite the impressive performance of Grayscale’s trusts, market dynamics underscore the challenges faced by retail investors who are exposed to trusts’ price fluctuations. Grayscale’s trusts, unlike exchange-traded funds (ETFs), do not directly track the market value of shares, resulting in premiums and discounts.
GBTC also increased by 200 percent on an annual basis
Grayscale’s pursuit of conversion to an ETF has been closely watched, and the recent court decision in its favor has raised expectations of potential restructuring. While Grayscale’s trusts are currently non-redeemable for retail investors, speculation remains that changes may be on the horizon, opening the door to broader investor access. The growing demand for Solana tokens in Grayscale’s Solana Trust sheds light on institutional investors’ willingness to pay a premium for regulated risk. The current market scenario positions GSOL as a sought-after investment, and institutional demand is evident in the OTC trading price of $531 per SOL token.
Last month, the SEC declined to appeal the court’s decision before the October deadline, fueling speculation that the ETF conversion could soon proceed, paving the way for other Grayscale Trusts to undergo similar restructurings. The news follows a spot Bitcoin ETF application by the world’s largest asset manager, BlackRock, in July, sparking bullish expectations that the first exchange-traded fund to invest in spot BTC could soon receive regulatory approval. GBTC shares have similarly outperformed spot Bitcoin in recent months. While GBTC has increased by 200% year-to-date, BTC has gained 10% in value in the same period.