Solana’s price is flying high again on crypto exchanges. However, regulated investors value SOL tokens at an astounding premium in Grayscale Solana Trust (GSOL).
The average SOL price on crypto exchanges was just under $62 Saturday afternoon U.K. time, according to data from CoinGecko. That puts the smart contract blockchain platform up over 49% in the seven-day window.
Furthermore, Solana is soaring over 180% on the 30-day scale after a stunning “Uptober” rally in crypto prices across the board.
But on Grayscale’s SOL fund, the DeFi blockchain’s tokens are doing even better. According to AAII, the fund provides a “cost-effective and convenient way to invest in SOL tokens (“SOL”) while avoiding the complication of directly holding SOL.”
Leaving no stone unturned, an X.com crypto sleuth took a look at the cryptocurrency hedge fund’s numbers Friday and did the math. Here’s what “jay on X” discovered:
– Greyscale SOL fund is trading at $125 a share
– Each share holds 0.38 SOL
– Implies $SOL is at $328 per token
– 600% premium to NAV (using $55)
What the fuck?
Solana is literally going to the moon holy shit lol pic.twitter.com/8E9A1UQiDj
— jay (@0xjaypeg) November 10, 2023
So, while retail traders, third-world denizens, and total “degens” are buying 1 SOL for $62 on crypto exchanges like Binance and KuCoin, smart money is buying 0.38 SOL for $125.
When you do the math, that comes out to $328 for each Solana token. This reveals that institutional investors are happy to pay the Grayscale premium to get Solana from a regulated, custodial Solana ETF fund.
Jay concluded in the ensuing discussion:
“it gives us a gauge of demand from trad-fi, and its crystal clear trad-fi wants to bid $SOL”
Here’s the kicker: Just a day after “jay on X” posted their discovery, GSOL is trading at $202 per share, with the same 0.38 SOL per share. That’s a going price of $531 for 1 SOL token in Grayscale’s Solana ETF in OTC markets on Saturday.
Don’t think this isn’t entering the mind of every investor.
— ◢ J◎e McCann (@joemccann) November 11, 2023
There are currently 304,427 shares outstanding for a total assets under management of $6,344,128 in the Grayscale SOL fund. Here’s where people have been buying Solana the most over the past three weeks.
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