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Sygnum’s research head warns that demand for Solana ETFs is set to disappoint, citing limited investor interest despite the growing popularity of crypto assets.
Sygnum Foresees Limited Demand for Solana ETFs
U.S. investors will not show much interest in Solana ETFs, according to Katalin Tischhauser, head of investment research at crypto bank Sygnum, who spoke with Cointelegraph.
The “miniscule” inflows of capital into Grayscale Solana Trust (GSOL), the private SOL fund managed by asset management Grayscale, suggest that there is little interest in SOL investment vehicles among US wealth managers, according to Tischhauser.
Solana’s Low AUM Reflects Struggles in Recognition
Based on Grayscale’s calculations, GSOL’s AUM is below $70 million. Tischhauser said that Grayscale Bitcoin Trust (GBTC) had about $30 billion under management before becoming an ETF in January.
Tischhauser stated:
“The small AUM reflects the relative name recognition of Solana versus Bitcoin.”
Demand Is Present But Not Market-Changing
As of August 15th, GSOL shares were trading at a premium to net asset value (NAV) of more than 7 times. A fund’s net asset value (NAV) is a reflection of the intrinsic value of its SOL holdings.
As per Tischhauser:
“The high premium suggests some demand, but it’s not the kind of demand that will significantly impact the market.”
According to data from Morningstar Inc., Bitcoin and Ethereum ETFs experienced record-breaking inflows in 2024 and now have a combined AUM of approximately $63 billion.
“More than three times the largest one-year inflow of any ETF ever in the history of ETFs,” remarked Dave LaValle, global head of ETFs at Grayscale, of the Bitcoin exchange-traded funds (ETFs) that have been available since January. “So, we’re talking about massive, massive adoption.”
Weak Demand Could Hamper Solana ETFs’ Success
Many are already wondering whether cryptocurrency assets will be the next to have an exchange-traded fund (ETF) launched. Franklin Templeton, VanEck, and 21Shares are among the asset managers that have shown interest in introducing SOL ETFs.
Despite having “very little interest” among its investors, Blackrock—the biggest ETF manager by AUM—has no plans to introduce a SOL ETF.
While launching and operating these products, “smaller issuers may make more money than their expenses,” Tischhauser remarked. “But it’s not going to be significant for the crypto market—it’s not going to be exciting.”