Osprey Readies SOL Fund as Solana Attracts Institutional Interest

Osprey appears to have beaten Grayscale in the race to get a Solana vehicle into the market.

Aug 24, 2021 at 9:52 p.m. UTC
Updated Sep 14, 2021 at 1:44 p.m. UTC

Osprey Funds has readied a private SOL fund for wealthy investors, signaling growing institutional interest in the Solana network’s booming native token.

The fund, called the Osprey Solana Trust, was registered with U.S. securities regulators Tuesday. It didn't have any sales as of press time and is open only to accredited investors, which means that retail traders are shut out for now.

That could change, though. Osprey is “seeking approval” for its Solana Trust to trade on the same over-the-counter marketplace that its bitcoin trust does, documents reviewed by CoinDesk show. 

The trust appears to be the first private SOL investment vehicle in the U.S.

It comes as a growing number of investors take interest in Solana, whose SOL token is up over 4,500% this year. It’s nearly doubled in value in the last week and now touts a market cap of over $20 billion.

Osprey has been working on its own Solana trust since at least mid-June, according to U.S. Securities and Exchange Commission records. Rival fund manager Grayscale also signaled in June that its own Solana fund was in the works. (Grayscale is owned by CoinDesk parent company Digital Currency Group.)

Trust products such as Osprey’s give Wall Street types a way to gain exposure to crypto prices without directly holding the underlying tokens. Instead, they give their cash to an investment vehicle that does the buying and holding on their behalf – usually for a fee.

Osprey won't begin charging a 2.5% management fee until 2023 in a sign of the competition for institutional crypto products, according to the documents reviewed by CoinDesk. Crypto exchange Coinbase is handling custodial duties, and Theorem Fund Services is the administrator.

Osprey did not immediately return a comment to CoinDesk.

The Festival for the Decentralized World
Thursday - Sunday, June 9-12, 2022
Austin, Texas
Save a Seat Now

DISCLOSURE

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

Trending

1
Morgan Stanley Warns NFTs Next to Watch After UST Collapse, Bukele Announces Mega Banks Meeting in El Salvador

The most valuable crypto stories for Monday, May 16, 2022.

The most valuable crypto stories for Monday, May 16, 2022.

2
First Mover Asia: Metaverse ETFs Are Underperforming Gaming ETFs; Cryptos Return to the Red

Public interest continues to grow about the metaverse, but not as much in metaverse ETFs. Does crypto belong in everything?

Public interest continues to grow about the metaverse, but not as much in metaverse ETFs. Does crypto belong in everything?

3
Coinbase Expands Features, Allowing Some App Users to Access Ethereum-Based Dapps

The move will let Coinbase users purchase NFTs, trade on decentralized exchanges and borrow and lend on various DeFi platforms.

The move will let Coinbase users purchase NFTs, trade on decentralized exchanges and borrow and lend on various DeFi platforms.

4
S&P Global Ratings Forms DeFi Group to Build Out Crypto Framework

The credit rating giant named Charles "Chuck" Mounts as chief DeFi officer to lead the unit.

The credit rating giant named Charles "Chuck" Mounts as chief DeFi officer to lead the unit.