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, shall be based mostly solely on PYTH’s value, much like Grayscale’s different single asset-based funds. The Pyth Community supplies real-time knowledge feeds to blockchains and performs a major position within the Solana community.
“By introducing Grayscale Pyth Belief, we purpose to provide traders entry to further higher-beta and higher-upside alternatives related to the continued development of Solana,” Grayscale Head of Product & Analysis Rayhaneh Sharif-Askary stated Tuesday in a press release.
Spot Bitcoin exchange-traded funds, which acquired 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 keeping with knowledge from UK-based asset supervisor Farside Traders. Spot Ethereum funds have acquired greater than $3 billion in web inflows.
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ToggleWhat’s Pyth?
Pyth is a decentralized oracle, a sort of service that connects real-world monetary knowledge akin to crypto and inventory costs to blockchains. The entity serves merchants on Solana—the second-largest blockchain by complete worth locked, in keeping with crypto markets knowledge supplier CoinGecko—establishing value feeds that allow monetary transactions to be priced accurately.
A full 95% of decentralized purposes on Solana use Pyth’s value feeds, in keeping with Grayscale.
The Grayscale Pyth Belief is one among a number of funding automobiles the asset supervisor has debuted in current months.
Final month, Grayscale unveiled its Bitcoin Miners ETF, which provides publicity to companies that take part in mining the world’s oldest cryptocurrency. Across the identical time, it additionally launched an funding fund for Dogecoin, the favored meme coin promoted by billionaire Elon Musk.
Grayscale, which provides 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 below 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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