Solana, a popular smart contract blockchain platform, has been experiencing a significant surge in its price on crypto exchanges. In the past seven days, the average SOL price on these exchanges has increased by over 49%. Moreover, the platform has seen an astonishing growth of over 180% in the past 30 days. However, it is noteworthy that institutional investors are placing an even higher value on SOL tokens in Grayscale Solana Trust (GSOL).
Grayscale Solana Trust (GSOL) offers regulated investors a cost-effective and convenient way to invest in SOL tokens without the complexities of directly holding the cryptocurrency. This has attracted a significant amount of interest from institutional investors looking to gain exposure to Solana in a regulated and custodial manner.
Upon analyzing the numbers of Grayscale Solana Trust, a crypto sleuth discovered that institutional investors are willing to pay a premium for SOL tokens. While retail traders can buy 1 SOL for around $62 on exchanges like Binance and KuCoin, institutional investors are acquiring 0.38 SOL for $125. Consequently, this translates to a staggering $328 for each Solana token when factoring in the Grayscale premium.
The willingness of institutional investors to pay the Grayscale premium provides valuable insights into the demand for SOL tokens from trad-fi (traditional finance). It is evident that trad-fi is highly interested in acquiring SOL tokens, as indicated by their willingness to bid high prices for them.
Grayscale Solana Trust’s Trading Performance
On the day following the discovery of the Grayscale premium, the trading price of GSOL stood at $202 per share, which reflects the same 0.38 SOL per share. Consequently, this implies a price of $531 for one SOL token in Grayscale’s Solana ETF on OTC markets. Currently, there are 304,427 shares outstanding for a total assets under management of $6,344,128 in the Grayscale SOL fund. This signifies a substantial demand for SOL tokens among institutional investors.
Over the past three weeks, investors have predominantly been buying Solana tokens through various channels. However, the exact allocation of these purchases across different platforms and exchanges was not mentioned in the original article.
The soaring price of Solana has attracted significant attention from both retail traders and institutional investors. While retail traders are buying SOL tokens on crypto exchanges, institutional investors are willing to pay a premium to acquire them through Grayscale Solana Trust. This illustrates the strong demand for SOL tokens in the traditional finance space and highlights the role of regulated investment options in the cryptocurrency market. As Solana continues its impressive growth, it will be intriguing to see how the dynamics between retail and institutional investors evolve in the coming months.