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Grayscale's GSOL: The Future Of Solana Investment Or A Bubble Waiting To Burst?

Published 17/04/2023, 22:18
© Reuters.  Grayscale's GSOL: The Future Of Solana Investment Or A Bubble Waiting To Burst?
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Benzinga - Grayscale has announced the public trading of its Solana Trust under the ticker symbol GSOL (OTC: GSOL), making it the latest addition to the 15 other cryptocurrency investment products the company offers on OTC Markets.

With 304,427 outstanding shares as of Friday, investors with access to U.S. securities can "buy and sell freely-tradable GSOL shares through their investment accounts," said Grayscale.

The objective of GSOL is to be linked to Solana (CRYPTO: SOL) to allow investors to gain exposure to the digital asset without owning them directly.

This strategy is similar to Grayscale's Bitcoin (CRYPTO: BTC) and Ether (CRYPTO: ETH) trusts, (OTC: GBTC) and (OTC: ETHE) respectively, where accredited investors with Bitcoin and Ether give crypto to Grayscale in exchange for shares in the trusts, while retail investors can acquire stock through public markets.

GSOL had been open to private placement since November 2021, and its website disclosures reveal that the Solana trust has $2.9 million in SOL.

Also Read: Crypto Lender Amber Group Shifts Focus Towards Institutional Business, May Shut Down Retail Operations

Meanwhile, GBTC manages $19 billion BTC, and ETHE manages $6.3 billion ETH.

However, GBTC and ETHE are trading far below the digital assets themselves, upsetting some investors.

GBTC is trading at a 37% discount to Bitcoin held in Grayscale's trust, after its long-running premium flipped negative in February 2021.

ETHE is trading at a markdown of minus 46%.

The launch of GSOL comes as Grayscale is still in a legal battle with the SEC over the rejection of its Bitcoin spot ETFs. A Grayscale victory over the SEC does not guarantee the approval of such investment products, according to Blockworks.

Read Next: The Real Reason Why Shaquille O'Neal Is In Hot Water Along With FTX Co-Founder

© 2023 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

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