After weeks of deliberation, alternative investment firm Grayscale Investments has launched a cryptocurrency trust based on SOL, the native token of a Proof-of-History (PoH) Layer 1 blockchain network Solana (SOL).
Key takeaways:
- Grayscale Solana Trust is the 16th product in the investment giants’ lineup of digital investment products. The solely and passively invested SOL trust has $9.7 million in assets under management (AUM), at the time of this writing.
- Solana uses a unique PoH consensus mechanism that ensures industry-leading throughout and low transaction costs, making it a perfect platform for non-fungible tokens (NFTs). Since the start of the year, SOL has gained more than 14,900% and is currently the fifth-best performing crypto asset in terms of ROI.
- Grayscale Investments, a subsidiary of Digital Currency Group (DCG), is the world’s largest asset manager of digital currencies. Most notably, Grayscale’s Bitcoin Trust (GBTC) accounts for by far the biggest share of the investment firm’s AUM, with $37.2 billion.
- The company currently operates 16 cryptocurrency trusts, based on some of the largest underlying crypto assets, including BTC, ETH, LINK, LTC, and XLM, to name just a few.
- Earlier in the month, Grayscale achieved a monumental milestone, surpassing the world’s largest spot gold ETF in terms of AUM. The shift from precious metals to crypto indicates investors are increasingly more inclined to invest in digital assets for inflation hedging purposes.
- In the first week of November, Grayscale announced that it is considering expanding its crypto product lineup with Avalanche (AVAX) and Terra (LUNA), two crypto-assets that have been performing incredibly well in the last month – AVAX is up 97%, while LUNA is up 42%.
- SOL has been experiencing strong bullish momentum in the last 48 hours, with the price rising from a cycle low of $182 on November 28 to $228 at press time, a 25% increase.
