By
Chimamanda U. Martha
May 13th, 2024
The Osprey Solana Trust will join a group of crypto vehicles provided by the company including Bitcoin Trust, Polkadot Trust, and Algorand Trust.
Osprey Funds, a crypto asset manager, has filed with the United States Securities and Exchange Commission (SEC) for a Solana (SOL) fund. Dubbed the ‘Osprey Solana Trust’, the crypto asset manager seeks to offer the Solana trust fund to accredited investors. Later on, the company plans to have the vehicle open for the general investors.
Notably, the Osprey Solana Trust will join a group of crypto vehicles provided by the company including Bitcoin Trust, Polkadot Trust, and Algorand Trust.
According to news outlet Coindesk, Osprey has been working on a Solana fund since at least mid-June. The company will rather be joining a very competitive sector largely dominated by Grayscale. Notably, the latter has also filed for its Solana trust fund with the US SEC.
In a bid to keep up with the high competition, Osprey seeks not to charge any management fee not until 2023. Moreover, more institutions are seeking to provide similar products in the same market. Notably, the company anticipates charging a management fee of approximately 2.5% as of 2023.
Bigger Picture on Osprey Solana Trust Fund
The decision by Osprey to provide a Solana-based trust fund is not by any means coincidental. Furthermore, besides the asset rallying to the top 10 digital assets according to CoinGecko, a notable thirst by institutional investors has been noted in the past few months.
According to CoinShares, Solana experienced the highest inflows of approximately $7.1 million in the past week. The figure was more likely supported by the fact that most institutional investors are now turning to Solana for future returns.
The asset has as a result rallied to an all-time high of $81.25, according to CoinGecko. Notably, Sol was trading around $68.41, down approximately 11.8% in the last 24 hours. With a market cap of approximately $19.94 billion, Solana reported a daily trading volume of approximately $1.71 billion.
Notably, there are 290,662,300 units of SOL in circulating supply out of a maximum supply of 488,630,611. Solana is up approximately 1947%, 141%, and 68% in the past year, 30 days and two weeks respectively.
The Solana blockchain has a key advantage over others in that it uses the proof of history together with the proof of stake concept to have a high throughput. Reportedly, the Solana network can manage up to 710k transactions per second on a 1 Gb network without data partitioning.