Grayscale Makes a Bold Bet — and It’s Not on Bitcoin or Ethereum
Grayscale has temporarily paused sponsor fees and reduced staking costs for its Grayscale Solana Trust (GSOL) to encourage institutional investors to adopt Solana as an alternative blockchain to Bitcoin and Ethereum. The initiative offers 100% staking of SOL holdings with a 7.23% annual yield and 95% of staking rewards returned to investors, aiming to boost Solana’s competitiveness and increase assets under management (AUM) to $1 billion. This strategy aligns with Solana's appeal, driven by its speed, low costs, and growing decentralized application ecosystem. While risks around liquidity and regulatory clarity remain, this move highlights Grayscale’s commitment to institutionalizing Solana’s growth and could mark a significant shift in digital asset investments.
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Grayscale Launches Incentives for Solana Trust (GSOL)
In a surprising move, Grayscale has decided to pause sponsor fees and reduce staking costs on its Grayscale Solana Trust (GSOL). This measure acts as an incentive to attract institutional inflows. The ultimate objective is to position Solana as appealing to institutions as Bitcoin and Ethereum were during their early adoption stages.
Fee Suspension and Asset Growth Strategy
Grayscale has announced that fees on its Solana Trust will be waived for three months or until it reaches $1 billion in assets, whichever comes first. This decision aligns with a broader strategy to respond to shifting institutional behavior in the digital asset market.
Meanwhile, Bitcoin and Ethereum products have experienced almost $800 million in outflows as funds adjust their portfolios. However, Solana has shown steady inflows, signaling a growing willingness among institutions to explore alternative blockchain networks.
Cost-Effective and Reward-Driven GSOL Staking
Grayscale’s current approach emphasizes both cost-efficiency and high returns:
- 0% Sponsor Fee with the waiver in place
- 7.23% Staking Rewards Rate, managed by partners like @GalaxyHQ, @CoinbaseInsto, and @Figment_io
- 95% Staking Rewards returned directly to investors
The Solana Trust now stakes 100% of its SOL holdings, delivering competitive annual yields, making it one of the most investor-focused products in the crypto market.
Why Solana Now?
Solana’s appeal has grown due to its rapid transaction speed, low costs, and an increasingly active decentralized application ecosystem. It has transitioned from a niche blockchain to a key player in areas like DeFi, NFTs, and on-chain innovation.
Recent technical upgrades and enhanced reliability have addressed scalability concerns, strengthening confidence in the network. Solana’s strong community-driven activities have managed to attract both retail and institutional interest alike.
Grayscale’s Bold Move to Establish Solana's Position
Grayscale’s fee waiver aims to boost participation and accelerate assets under management (AUM) growth more quickly. As of November 4, 2025, the trust:
- Has $88.6M in net assets
- Represents 0.10% of the SOL market
- Has all holdings 100% staked for rewards
By providing a regulated and accessible investment vehicle, Grayscale enables traditional investors to participate in Solana’s growth, without requiring them to directly manage crypto assets.
Calculated Risks and Institutional Potential
Grayscale’s initiative comes with calculated risks. Institutional investors continue to prioritize factors such as liquidity, regulatory clarity, and long-term stability—areas where Solana is still maturing compared to Bitcoin and Ethereum.
Nevertheless, this trust’s improved structure could establish a blueprint for how digital asset managers attract institutional capital in the next market cycle. With accelerating inflows, Solana might emerge as the third foundational asset for institutional crypto exposure, alongside Bitcoin and Ethereum.
A New Chapter in Institutional Crypto Investment
Grayscale’s intentions are clear: it is not just supporting Solana, it is fully committing to it. This bold bet could redefine how institutions perceive and invest in crypto assets—paving the way for the next evolution in digital asset management.
The post originally appeared on BeInCrypto, emphasizing Grayscale's message: Solana is now at the forefront of their institutional stewardship strategy.