Signature Bank Sees Minimal Demand for Solana ETF

IconCryptoNewsTerminal Staff15 Aug, 2024

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Signature Bank Sees Minimal Demand for Solana ETF

Signature Bank, a leading provider of banking services to the digital asset industry, has observed "hardly any demand" for a Solana (SOL) exchange-traded fund (ETF). According to Katalin Tischhauser, Head of Investment Research at Signature Bank, Grayscale Solana Trust (GSOL), which tracks the performance of SOL, has less than $70 million in assets under management (AUM). This is significantly lower than Grayscale Bitcoin Trust (GBTC), which had roughly $30 billion in AUM before converting to an ETF earlier this year. "Although GSOL trades at a premium, the demand is not there to move the needle," Tischhauser said. The lack of demand for a SOL ETF is also reflected in the recent announcement by BlackRock, the world's largest asset manager, that it has no plans to launch a spot SOL ETF due to little interest from its clients. Signature Bank's observations highlight the still nascent stage of institutional adoption of Solana. While the network has gained traction among retail investors and developers, it remains to be seen whether it can attract significant interest from large asset managers and institutional investors.

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