Crypto asset supervisor Grayscale on Tuesday unveiled a fund based mostly on the Solana-based governance token of the Pyth community, including to its choices amid surging investor demand for digital asset-focused funding merchandise.
The fund, which is open to retail and institutional traders, can be based mostly solely on PYTH’s worth, just like Grayscale’s different single asset-based funds. The Pyth Community offers real-time information feeds to blockchains and performs a big position within the Solana community.
“By introducing Grayscale Pyth Belief, we purpose to offer traders entry to further higher-beta and higher-upside alternatives related to the continued progress of Solana,” Grayscale Head of Product & Analysis Rayhaneh Sharif-Askary mentioned Tuesday in an announcement.
Spot Bitcoin exchange-traded funds, which obtained approval from the SEC in January 2024, have boosted curiosity in cryptocurrency, prompting fund issuers to introduce new choices. These ETFs have netted greater than $40 billion in inflows, in response to information from UK-based asset supervisor Farside Traders. Spot Ethereum funds have obtained greater than $3 billion in internet inflows.
What’s Pyth?
Pyth is a decentralized oracle, a kind of service that connects real-world monetary information comparable to crypto and inventory costs to blockchains. The entity serves merchants on Solana—the second-largest blockchain by complete worth locked, in response to crypto markets information supplier CoinGecko—establishing worth feeds that allow monetary transactions to be priced appropriately.
A full 95% of decentralized purposes on Solana use Pyth’s worth feeds, in response to Grayscale.
The Grayscale Pyth Belief is considered one of a number of funding automobiles the asset supervisor has debuted in current months.
Final month, Grayscale unveiled its Bitcoin Miners ETF, which presents publicity to companies that take part in mining the world’s oldest cryptocurrency. Across the similar time, it additionally launched an funding fund for Dogecoin, the favored meme coin promoted by billionaire Elon Musk.
Grayscale, which presents greater than 30 funds, can also be nonetheless awaiting SEC approval to convert a number of trusts into spot XRP, Litecoin, and Solana ETFs, respectively.
The Grayscale Bitcoin Belief (GBTC) now manages about $19 billion in property and a separate mini belief, a derivative, has roughly $4 billion in property beneath administration. GBTC was transformed from a belief to a spot ETF final 12 months, as was Grayscale’s Ethereum Belief.
Edited by James Rubin
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