TLDR
- Bitwise Solana Staking ETF launches with $223 million in assets
- Institutional demand for investment-focused ETFs is growing
- BSOL offers exposure to Solana with a yield of 7%
- The SEC clarifies that contribution activities are not securities offerings
- The previous Solana ETF launch in Europe faces delays
The piecemeal Solana Staking ETF (BSOL) launched on Tuesday and attracted $223 million in assets on its first day. This marks a strong start for the new product, signaling increased interest in crypto ETFs, especially from institutional investors. The debut of BSOL follows similar trends seen in Bitcoin and Ether ETFs earlier this year.
Bitwise’s $223M Solana ETF Launch
The Bitwise Solana Staking ETF (BSOL) began trading with $223.8 million in assets on day one. Eric Balchunasa senior ETF analyst at Bloomberg Intelligence, highlighted the size as significant for a new ETF.
He stated, “The inflows signal growing institutional confidence in stake-focused crypto ETFs.”
Bitwise previously launched a Solana staking product in Europe, but the US version suffered delays. The launch follows a May 29 staff statement from the US SEC clarifying that certain betting activities do not constitute securities offerings. The ETF offers exposure to Solana (SOL) and returns around 7% from stake rewards.
The Bitwise Solana ETF’s launch came after the SEC clarified its position on proof-of-stake (PoS) activities in late May. After the SEC’s statement, staking-focused crypto products like BSOL received more regulatory clarity. This has allowed institutional investors to engage more confidently with invested assets.
BSOL marks the first Solana ETF in the US, attracting attention due to the growing interest in alternative cryptocurrencies. Before BSOL, the REX-Osprey Solana Staking ETF (SSK) launched on June 30, but it only saw $12 million in volume on its first day. In comparison, BSOL’s debut highlights a much larger appetite for strike-related products in the US.
The growing interest in investing in ETFs
The launch of BSOL is the latest in a series of crypto ETF products gain traction in the US market. Earlier this year, spot Bitcoin ETFs saw massive inflows and Ether ETFs followed with solid growth. Analysts now predict that upcoming Solana and XRP ETFs will continue to see strong investor interest.
In January, JPMorgan predicted that Solana and XRP ETFs could attract billions in the first six months. This prediction is based on the strong performance of Bitcoin and Ether ETFs. The bank projects $3 to $6 billion for Solana and $4 to $8 billion for XRP ETFs in their initial phases.
