Grayscale, the world’s largest digital currency asset manager, recently revealed that it has just launched a new Trust with exposure to Ethereum’s competitor and the year’s most talked-about blockchain, Solana, for institutional investors.
As per the news, the latest product is dubbed “Solana Trust.” It will be added to the list of Grayscale’s chains of products, making it the 16th product the asset manager will offer to high-net-worth and institutional investors.
Commenting on the latest news, and about Solana’s potentials to identify untapped use areas for blockchain technology as a major attraction for adding it to Grayscale’s expanding product line, Michael Sonnenshein, Chief Executive Officer (CEO) at Grayscale, noted;
“What’s been interesting about Solana is that it gives users the ability to learn, experiment, and build. They generally have more budget to experiment on the protocol than some other more established blockchains like Ethereum, because of lower transaction fees.”
Solana’s Cheap Transaction Fees Attract Investors
Since its launch earlier in 2017 by Anatoly Yakovenko, Solana blockchain has gained jaw-gapping traction because of its remarkable transaction speed and extremely cheap transaction costs.
Worth noting is that on average, transactions on Solana would cost only a cent’s fraction, while users on the Ethereum network pay as much as $40 per transaction. No wonder Solana has earned the Ethereum Killer tag.
Additionally, fresh data from Coinshares, a London-based asset management firm, indicates that institutional investors prefer the Solana network over other available options. The report states, “In terms of inflows relative to AuM, Polkadot and Solana continue to be the winners, with inflows representing 8.6% (US$11.5m) and 5.9% (US$14.6m) of AuM respectively last week.”
Although Solana has gained massive traction since it was founded, the blockchain network has also seen some instabilities, with transactions getting stuck for 17 hours after it suffered a similar issue in September.
Meanwhile, launching Solana Trust is not the first time Grayscale will open up new opportunities for investors on its platform. The asset manager had earlier in the year launched five new investment trusts, namely, Grayscale Filecoin Trust, Grayscale Chain link Trust, Grayscale basic attention token Trust, Grayscale Livepeer Trust, and Grayscale Decentraland Trust.