Grayscale Launches Solana's Pyth Network Fund Amidst Crypto Boom

Crypto asset manager Grayscale has launched a new fund based on the Solana-based governance token of the Pyth network, catering to the growing demand for digital asset-focused investment products. The fund, open to both retail and institutional investors, will track the price of PYTH, the native token of the Pyth network, which provides real-time data feeds to blockchains and plays a significant role in the Solana network.

Grayscale's Head of Product & Research, Rayhaneh Sharif-Askary, stated, "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." The launch of this fund comes amidst surging interest in cryptocurrency, driven by the approval of spot Bitcoin exchange-traded funds (ETFs) by the SEC in January 2024. These ETFs have attracted over $40 billion in inflows, according to data from UK-based asset manager Farside Investors.

The Pyth network is a decentralized oracle, a service that connects real-world financial data such as crypto and stock prices to blockchains. It serves traders on Solana, the second-largest blockchain by total value locked, according to crypto markets data provider CoinGecko. Pyth's price feeds enable financial transactions to be priced correctly and are used by 95% of decentralized applications on Solana, according to Grayscale.

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, offering 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 still awaiting SEC approval for spot XRP, Litecoin, and Solana ETFs, respectively.