Grayscale Solana Trust (GSOL) premium to SOL price surges

November 08, 2023 05:45 AM PST | By Invezz

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Grayscale Solana Trust (GSOL) premium to SOL price surges — Image source: Invezz

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Grayscale Solana Trust (GSOL) premium to the SOL token has widened to the highest point since December 2021. While Solana price has jumped by about 92.5% in the past 12 months, GSOL has risen by over 375% in the same period. The strong performance of GSOL is a sign that there is institutional demand for the asset.

GSOL is one of the many products that Grayscale holds with the most popular of them being Grayscale Bitcoin Trust (GBTC), which has over $19 billion in total assets. GSOL is meant to give users, especially institutional investors, access to the Solana market. It charges a 2.50% fee and has accumulated over $5.1 million in total assets.

A single unit of GSOL was trading at $95.60 while the holdings per share has jumped to 16.90. Solana has been in the spotlight this year as it has been one of the top-performing big cryptocurrencies.

SOL has jumped to a high of $43.15, the highest point since August 8th of last year. At its peak, the coin has jumped by more than 310% from its lowest point in 2023. This rally has brought its total market cap to over $18 billion, making it the 7th biggest cryptocurrency in the world.

A key concern among investors has been Solana’s exposure to FTX Estate, which holds millions of tokens. Ultimately, the estate will want to sell these tokens as the bankruptcy proceedings continues. Recently, the estate moved many tokens to exchanges like Binance and Kraken, impacting its price.

Other Grayscale’s trusts are trading at a substantial premium. Grayscale Bitcoin Trust (GBTC), which has historically traded below NAV, now has a 4.27% premium. Similarly, Grayscale Chainlink Trust (GLINK) and Grayscale Ethereum Trust (ETHE) have a 17% and 2.6% premium.

Grayscale Bitcoin Trust’s premium to NAV started rising after Grayscale won a major lawsuit against the Securities and Exchange Commission. In that lawsuit, the court ordered the agency to review the company’s proposal to convert the trust to a spot Bitcoin ETF.

If Grayscale succeeds in doing this, analysts expect that the company will attempt to convert it into an ETF.

The post Grayscale Solana Trust (GSOL) premium to SOL price surges appeared first on Invezz

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