$SOL ETFs Will See Limited Demand, Says Sygnum

Last updated: 2024/08/16 at 9:46 PM

The Madras Tribune

Contents

‘Massive Adoption’ of Crypto ETFs Tepid Demand for Solana ETFs?Final Thoughts References Our Editorial Process

The successful launch of Bitcoin ($BTC) and Ethereum ($ETH) ETFs has sparked expert interest in Solana ($SOL) ETFs.
Despite this, Sygnum’s Head of Investment Research, Tischhauser, highlighted weak demand for $SOL ETFs in the US.
Franklin Templeton, VanEck, and 21Shares remain positive about crypto investment products, including $SOL ETFs.

Solana EFTs Will See Limited Demand, Says Sygnum

This year saw record inflows into $BTC and $ETH ETFs, which has sparked interest from asset managers and investors in launching $SOL ETFs. Read on for expert opinions on Solana ETFs and their implications for the crypto industry.

‘Massive Adoption’ of Crypto ETFs

Morningstar data shows that $BTC and $ETH ETFs now command almost $63B in assets under management (AUM). Managing Director of Grayscale Investments Dave LaValle highlighted it’s ‘a massive adoption.’

We have more than 15 billion inflows. That’s more than three times the largest one-year inflow of any ETF ever in the history of ETFs. So, we’re, we’re talking about massive, massive adoption.Dave LaValle, Grayscale’s global head of ETFs

Grayscale Solana Trust (GSOL)’s AUM is less than $70M, whereas the Grayscale Bitcoin Trust (GBTC) managed nearly $30B prior to its conversion to an ETF in January.

Tepid Demand for Solana ETFs?

Tischhauser pointed out that $SOL ETFs will not see significant demand among US investors, given the low uptake of GSOL. Low inflows into GSOL show weak US demand for $SOL investment vehicles. Tischhauser believes that ‘the small AUM reflects the relative name recognition of Solana versus Bitcoin.’

The largest ETF manager by AUM, BlackRock, sees ‘very little interest’ among its clients and has no plan to launch a $SOL ETF.

However, US-based investment firms Franklin Templeton, VanEck, and 21Shares expressed interest in launching $SOL ETFs.

Final Thoughts

Despite the current tepid demand, will $SOL ETFs become a mainstream investment vehicle? Only time will tell.

References

Disclaimer: The opinions expressed in this article do not constitute financial advice. We encourage readers to conduct their own research and determine their own risk tolerance before making any financial decisions. Cryptocurrency is a highly volatile, high-risk asset class.

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The Tech Report editorial policy is centered on providing helpful, accurate content that offers real value to our readers. We only work with experienced writers who have specific knowledge in the topics they cover, including latest developments in technology, online privacy, cryptocurrencies, software, and more. Our editorial policy ensures that each topic is researched and curated by our in-house editors. We maintain rigorous journalistic standards, and every article is 100% written by real authors.

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