Grayscale expects Solana ETFs to attract more than $5 billion in inflows as institutional demand accelerates.
As Solana ETFs began trading in the U.S. this week, investor interest surged rapidly. Speaking to DL News, Zach Pandl, Head of Research at Grayscale, said Solana ETFs could mirror the strong performance of last year’s Bitcoin and Ethereum products. According to Pandl, “It’s reasonable to expect at least 5% of the circulating SOL supply to be held in ETFs within one to two years,” representing over $5 billion in potential inflows.
The Bitwise BSOL ETF, launched earlier this week, saw $129 million in inflows over its first two days, while Grayscale’s GSOL drew $4 million on its first day post-conversion. Pandl noted that GSOL, which debuted as a trust in 2021, now trades at parity with its underlying asset after its ETF conversion. However, competition is heating up as new token ETPs for assets like Hedera and Litecoin approach regulatory approval.
Solana ETFs stand out for offering around 5.7% annual staking yield, with GSOL passing 77% of staking rewards to investors (subject to change). Unlike Bitcoin ETFs, which lack staking due to the mining model, and Ethereum ETFs, which offer limited staking options, Solana’s yield potential could attract long-term institutional capital. Pandl concluded that while many investors may prefer diversified crypto ETPs, Solana ETFs’ long-term success will depend on the pace of stablecoin and tokenization adoption across its ecosystem.
