Grayscale debuts GSOL staking ETF on NYSE Arca, still waiting on full ETF approval

Grayscale announced the trading debut of its Solana staking ETF on the NYSE Arca platform. The ETF launched despite the US government shutdown, still trading in the form of an ETP, which is less strictly regulated. 

Grayscale announced the launch of GSOL, its staking Solana ETF. The trading product was approved to launch on NYSE Arca despite the US government shutdown. The investment vehicles follow an earlier launch in the form of ETP, as Grayscale aims to transform its older crypto investment vehicles into ETFs. 

The current trading launch still regards the Solana Trust ETF (GSOL) as an ETP entity, before an eventual full transformation into an ETF. However, this is the first uplisting for one of Grayscale’s staking investment vehicles. 

“Today’s GSOL launch underscores our conviction that the modern portfolio includes digital asset exposure for growth and diversification alongside equities, bonds, and alternatives,” said Inkoo Kang, Senior Vice President, ETFs, at Grayscale. 

Following the news of the launch, SOL again recovered its earlier price range, trading at $198.97.

Grayscale makes use of generic listing standard

Grayscale made use of the new generic listing standard, approved by the US Securities and Exchange Commission. GSOL is not registered under the Investment Company Act of 1940, and is not regulated the same way as registered ETFs and mutual funds. 

As Cryptopolitan reported earlier, the generic listing standard was approved on September 18, opening the door to easier listings for ETFs. 

The GSOL product was first launched in 2021 and is still trading on the OTC market.

In the past day, volumes for GSOL increased. The asset remains volatile and may trade above or below the SOL included in each share. Currently, the trust carries $14.19 SOL per share, while trading at $14.26. 

The trust is considered relatively risky compared to other products. However, the product has shown its stability over the years, currently carrying $102M in assets under management. 

Grayscale boosts Solana staking

Nearly 75% of the SOL held in the GSOL product is staked. Currently, Solana staking can earn up to 7.7%, depending on the validator. 

Grayscale uses the Figment validator, staking SOL with its long-term partner. Figment has historically achieved yields between 7% and 9%. Currently, over 67% of SOL is staked in some form, either native or liquid staking. 

Around $72B SOL is held in native staking, and $11.37B in liquid staking protocols. The usage of staking for SOL reserves is setting up a new standard for ETFs, as well as treasury companies. Staking is a low-risk way of tapping SOL rewards and a share of fees provided by validators. 

Staking may boost the price of SOL, but it is considered a risk in the case of an ETF. Grayscale warned that the fund cannot sell or transfer SOL during a staking period, and may be subject to fluctuations during that period. Staking may lead to missed opportunities to sell while waiting out the unstaking period. 

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