Grayscale Debuts Fund Based on Pyth Network Solana Token

Crypto asset manager Grayscale on Tuesday unveiled a fund based on the Solana-based governance token of the Pyth network, adding to its offerings amid surging investor demand for digital asset-focused investment products.

The fund, which is open to retail and institutional investors, will be based solely on PYTH’s price, similar to Grayscale’s other single asset-based funds. The Pyth Network provides real-time data feeds to blockchains and plays a significant role in the Solana network.

“By introducing Grayscale Pyth Trust, we aim to give investors access to additional higher-beta and higher-upside opportunities associated with the continued growth of Solana,” Grayscale Head of Product & Research Rayhaneh Sharif-Askary said Tuesday in a statement.

Spot Bitcoin exchange-traded funds, which received approval from the SEC in January 2024, have boosted interest in cryptocurrency, prompting fund issuers to introduce new offerings. Those ETFs have  netted more than $40 billion in inflows, according to data from UK-based asset manager Farside Investors. Spot Ethereum funds have received more than $3 billion in net inflows. 

What is Pyth?

Pyth is a decentralized oracle, a type of service that connects real-world financial data such as crypto and stock prices to blockchains. The entity serves traders on Solana—the second-largest blockchain by total value locked, according to crypto markets data provider CoinGecko—establishing price feeds that enable financial transactions to be priced correctly.  

A full 95% of decentralized applications on Solana use Pyth’s price feeds, according to Grayscale. 

The Grayscale Pyth Trust is one of several investment vehicles the asset manager has debuted in recent months.

Last month, Grayscale unveiled its Bitcoin Miners ETF, which offers exposure to firms that participate in mining the world’s oldest cryptocurrency. Around the same time, it also introduced an investment fund for Dogecoin, the popular meme coin promoted by billionaire Elon Musk. 

Grayscale, which offers more than 30 funds, is also still awaiting SEC approval to convert several trusts into spot XRP, Litecoin, and Solana ETFs, respectively. 

The Grayscale Bitcoin Trust (GBTC) now manages about $19 billion in assets and a separate mini trust, a spinoff, has roughly $4 billion in assets under management. GBTC was converted from a trust to a spot ETF last year, as was Grayscale’s Ethereum Trust.

Edited by James Rubin