Zach Pandl, head of analysis at Grayscale Investments, believes Solana exchange-traded funds (ETFs) may quickly rival the success of Bitcoin and Ethereum funding merchandise.
He expects that inside one to 2 years, about 5% of all Solana tokens could possibly be held in regulated exchange-traded constructions, a share price over $5 billion at immediately’s costs.
Pandl made this prediction following the launch of Grayscale Solana ETF (GSOL) and Bitwise Solana ETF (BSOL) this week. Each merchandise mark a brand new chapter for the fast-growing market of crypto-based funding autos.
Robust Debut for New Solana ETFs
Bitwise’s BSOL started buying and selling on Tuesday, drawing $129 million in inflows inside its first two days, according to Bloomberg ETF analyst Eric Balchunas.
Grayscale’s GSOL, which launched the following day, recorded $4 million on its first buying and selling day.
Regardless of being a day behind, analysts described GSOL’s early efficiency as robust, given the more and more crowded market. Pandl stated Grayscale expects Solana ETFs to change into multi-billion-dollar companies as investor curiosity broadens.
Grayscale $4m appears like on Day One. Wholesome however obv in need of BSOL. Being simply at some point behind is definitely actually enormous. Makes it a lot tougher.
— Eric Balchunas (@EricBalchunas) October 29, 2025
From Area of interest to Mainstream: Crypto ETFs Achieve Floor
Alternate-traded merchandise (ETPs) permit traders to acquire cryptocurrency publicity via conventional brokerage and retirement accounts. This construction allows participation within the asset class with out requiring direct possession of digital tokens.
In accordance with the Funding Firm Institute, U.S.-listed ETFs held over $10 trillion in belongings by the top of 2024, accounting for 26% of all managed belongings.
Crypto ETFs symbolize solely a small fraction of this complete, however their progress has been speedy. Bitcoin ETPs at present handle $149 billion, whereas Ethereum merchandise maintain $26 billion, throughout roughly 20 funds.
Regulation Stays a Concern
Not all monetary establishments share Grayscale’s optimism. Earlier this week, Charles Schwab warned that crypto stays frivolously regulated, even because the U.S. Securities and Alternate Fee (SEC) continues to approve new ETPs.
“The SEC’s hands-off stance means greater threat for traders,” the agency stated, noting that the crypto sector lacks the oversight utilized to equities and bonds.
GSOL Evolution: From Belief to ETF
Grayscale’s Solana product, GSOL, initially launched as a non-public belief in 2021, holding round $100 million in Solana tokens.
Its conversion to an ETF this week makes the fund extra versatile, permitting it to commerce nearer to the precise worth of its holdings. The shift eliminates the massive premiums and reductions usually seen in closed-end crypto trusts.
Pandl stated the conversion opens entry to a broader vary of traders whereas bettering liquidity and pricing transparency.
Competitors and Diversification Forward
Solana’s debut comes as Hedera and Litecoin ETFs additionally enter the market, although their inflows stay modest. Greater than a dozen further crypto-based funds are anticipated to hunt approval quickly.
Pandl expects investor curiosity to step by step shift towards diversified crypto ETPs, which give publicity to a number of tokens concurrently.
“Many traders will choose easier, diversified choices that cut back the complexity of evaluating every token,” he stated.
Staking Provides a New Supply of Yield
In contrast to Bitcoin ETFs, Solana funding merchandise can provide staking rewards, a characteristic distinctive to proof-of-stake networks. By locking Solana tokens to assist safe the blockchain, traders can earn an estimated annual yield of 5.7%, according to Solana Compass.
Pandl confirmed that GSOL will distribute 77% of staking rewards to its holders, calling it “a recreation changer for crypto demand.” He described staking as a brand new earnings stream that would assist traders diversify portfolio returns.
Distinct Roles for Solana and Ethereum
Pandl stated Solana and Ethereum will doubtless develop distinct roles within the digital asset ecosystem, regardless of each being sensible contract platforms. He pointed to rising adoption of stablecoins and tokenized belongings as key drivers of institutional curiosity.
“They differ in design, and that offers every blockchain its personal lane,” Pandl defined. “Traders can profit from holding each as a part of a balanced crypto technique.”
DisClamier: This content material is informational and shouldn’t be thought of monetary recommendation. The views expressed on this article could embody the creator’s private opinions and don’t replicate The Crypto Primary opinion. Readers are inspired to do thorough analysis earlier than making any funding selections. The Crypto Primary isn’t accountable for any monetary losses.
