Grayscale Announces Big Announcement for Solana (SOL)!

While the US government shutdown continues, the SEC hasn’t been able to announce its decisions regarding altcoin ETFs. However, under the newly adopted rules, ETFs for three altcoins began trading last week.

At this point, a first in history occurred and Solana (SOL), Litecoin (LTC) and Hedera (HBAR) ETFs began trading.

One of these ETFs was the Grayscale Solana ETF. Just like with its Bitcoin and Ethereum ETFs, Grayscale converted the Grayscale Solana Trust (GSOL) into the spot SOL ETF.

While the Solana ETFs are off to a successful start, Grayscale has made a surprising move, deciding to halt sponsorship fees on Grayscale Solana Trust (GSOL) stock and reduce its stock costs.

At that point, Grayscale announced it would reduce costs associated with equity investing for up to three months or until the fund reaches $1 billion in assets under management, whichever comes first.

Grayscale also stated that the fund will stake 100% of Solana assets, generate a 7.23% return, and pay 95% of its generated rewards directly back to investors.

“By removing the management fee for GSOL and lowering the equity fee, we are directing more of the economics to investors,” said Inkoo Kang, Senior Vice President of ETFs at Grayscale. “We have been buying stocks in GSOL since October 6th, even before it became an ETP. GSOL aims to deliver real long-term benefits to investors, which is underscored by our diversified confirmatory approach, a key element of the equity program implemented at GSOL.”

The move is part of a broader strategy designed to attract new institutional capital inflows, it said.

Grayscale added that the temporary fee waiver applies to both new and existing GSOL investors.

As is well known, the GSOL ETF, like Grayscale’s Bitcoin and Ethereum ETFs, initially began as a trust. GSOL launched in 2021. Before converting to an ETF, the trust held $100 million worth of Solana.

*This is not investment advice.