$SOL ETFs Will See Limited Demand, Says Sygnum

• The successful launch of Bitcoin ($BTC) and Ethereum ($ETH) ETFs has sparked expert interest in Solana ($SOL) ETFs.
• Despite this, Sygnum's Head of Investment Research, Tischhauser, highlighted weak demand for $SOL ETFs in the US.
• Franklin Templeton, VanEck, and 21Shares remain positive about crypto investment products, including $SOL ETFs.

This year saw record inflows into $BTC and $ETH ETFs, which has sparked interest from asset managers and investors in launching $SOL ETFs. Read on for expert opinions on Solana ETFs and their implications for the crypto industry.

Massive Adoption' of Crypto ETFs

Morningstar data shows that $BTC and $ETH ETFs now command almost $63B in assets under management (AUM). Managing Director of Grayscale Investments Dave LaValle highlighted it's a massive adoption.'

We have more than 15 billion inflows. That's more than three times the largest one-year inflow of any ETF ever in the history of ETFs. So, we're, we're talking about massive, massive adoption.Dave LaValle, Grayscale's global head of ETFs

Grayscale Solana Trust (GSOL)'s AUM is less than $70M, whereas the Grayscale Bitcoin Trust (GBTC) managed nearly $30B prior to its conversion to an ETF in January.

Tepid Demand for Solana ETFs?

Tischhauser pointed out that $SOL ETFs will not see significant demand among US investors, given the low uptake of GSOL. Low inflows into GSOL show weak US demand for $SOL investment vehicles. Tischhauser believes that the small AUM reflects the relative name recognition of Solana versus Bitcoin.'

Smaller issuers may make more money than their expenses by launching and running these products. But it's not going to be significant for the crypto market-it's not going to be exciting.Sygnum's Head of Investment Research Katalin Tischhauser

The largest ETF manager by AUM, BlackRock, sees very little interest' among its clients and has no plan to launch a $SOL ETF.

However, US-based investment firms Franklin Templeton, VanEck, and 21Shares expressed interestin launching $SOL ETFs.

Final Thoughts

Despite the current tepid demand, will $SOL ETFs become a mainstream investment vehicle? Only time will tell.

References

• ETF Bild Project: ETFs and Crypto - Past, Present and Future Webinar (sec.gov)
• Solana ETFs will not see significant demand - Sygnum research head (CoinTelegraph)

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