Grayscale Introduces Pyth Investment Fund
Grayscale Investments has introduced an investment fund for the native token of the Pyth Network, PYTH, the asset manager announced on Feb. 18.
The Grayscale Pyth Trust, available exclusively to qualified investors, provides exposure to “the governance token powering the Pyth network,” according to Grayscale.
Pyth utilizes decentralized oracles to supply market data—including information on cryptocurrencies, equities, and commodities—to over 90 blockchain networks, including Solana.
Oracles serve as bridges between off-chain data sources, such as prices from centralized exchanges, and smart contracts on blockchain networks.
Grayscale highlighted that approximately 95% of decentralized applications on Solana depend on Pyth’s price feeds, underscoring its “strong market position.”
Grayscale emphasized Pyth’s role in the Solana ecosystem, stating that “by providing accurate and real-time data feeds, Pyth plays a crucial role in the Solana ecosystem and is poised to thrive alongside Solana’s growth.”
The trust seeks to offer “higher-beta and higher-upside opportunities associated with the continued growth of Solana,” according to Rayhaneh Sharif-Askary, Grayscale’s head of product and research.
PYTH, which launched in 2023, has a market capitalization exceeding $750 million, as reported by CoinGecko.
Since 2023, Solana has witnessed rapid expansion, largely fueled by a surge in memecoin trading activity.
In 2024, the total value locked (TVL) on Solana’s blockchain soared from approximately $1.4 billion to over $9 billion, according to DefiLlama.
In January, it reached a peak of more than $12 billion.
However, growing concerns over insider selling and significant losses among retail traders have dampened sentiment around Solana memecoins, leading to increased short interest in SOL.
On Feb. 14, Libra (LIBRA), a cryptocurrency that appeared to have the backing of Argentine President Javier Milei, lost around $4.4 billion in market capitalization within hours of its launch.
Despite a slowdown in memecoin trading, Solana continues to generate more revenue than its competitor, Ethereum, based on data from DefiLlama.
With the launch of the PYTH fund, Grayscale expands its lineup of single-asset crypto investment products.
In January, the asset manager introduced a Dogecoin investment fund, catering to the most valuable memecoin by market capitalization.
In December, Grayscale launched two additional investment funds for governance tokens linked to Lido (LDO) and Optimism (OP).
It also included roughly 35 altcoins—such as Worldcoin and Rune—on a list of assets that are “under consideration” for potential future investment products.
Grayscale remains best known for its Bitcoin and Ether exchange-traded funds, notably the Grayscale Bitcoin Trust (GBTC) and the Grayscale Ethereum Trust (ETHE).
Sources:
https://cointelegraph.com/news/grayscale-launches-pyth-investment-fund
https://www.coingecko.com/en/coins/pyth-network
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