12 April, 2024



Grayscale Solana Trust Sees Record Market Price Amid Speculation

12 Mar, 2024

12 Mar, 2024

  • GSOL’s market price soared to $540, significantly outpacing its NAV, reflecting heightened investor interest.
  • Speculation surrounds institutional investment, particularly with Pantera Capital’s involvement in staked Solana assets.
  • Grayscale and Coinbase discussed converting Grayscale’s Ethereum Trust into a spot ETF with the SEC amid growing interest in Solana and proposals for new ETFs.

Grayscale Solana Trust (GSOL) recently reported an extraordinary increase in its market price to $540, significantly exceeding its Net Asset Value (NAV) per share of $55.48. With only a 0.05% daily increment in NAV, the discrepancy between the market valuation and the NAV stands out. This suggests heightened investor interest, as reflected by its nearly $49.5 million in Assets Under Management (AUM).

Data from Grayscale revealed that on March 8, GSOL hit a record market price of $540, leading to a premium rate of 873%. However, by March 11, this price receded to $317, though the premium rate remained high at 472%.

The trust’s substantial market price increase is not an isolated event. CoinShares reported that Solana investment products saw net inflows of $24 million last week, indicating strong institutional demand for Solana.

The cryptocurrency investment community is abuzz with theories regarding the catalyst behind GSOL’s price escalation. Social media influencer MartyParty hinted at institutional investments, particularly pointing towards Pantera Capital’s connection with staked Solana assets, previously tied to FTX Official. The considerable difference between GSOL’s market price and its NAV has sparked discussions on potential undisclosed information accessible to institutions but not the general public.

In parallel, Solana’s blockchain is experiencing significant growth, evidenced by a surge in new address creation, which has reached a new peak. According to The Block’s Data Dashboard, the daily count of new addresses, based on a seven-day average, exceeded 691,000. Solana’s burgeoning ecosystem is also reflected in its decentralized exchanges (DEXs), where trading volumes have consistently topped $2 billion since the onset of March.

This development follows Grayscale and Coinbase’s meeting with the SEC on March 6 regarding the proposal to convert Grayscale’s Ethereum Trust into a spot ETF. This meeting came after the conclusion of the commenting period for the proposal, focusing on addressing concerns regarding potential market manipulation if the fund received approval. However, Grayscale is not only looking to convert its Ethereum Trust into an ETF but has also proposed a second ETF for Ether futures trading.

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