Investors are eagerly anticipating the launch of the first Solana staking exchange-traded fund (ETF), a development that is likely to channel billions of dollars into Solana and the altcoin market at large.
According to Bloomberg analyst Eric Balchunas, at least three altcoin ETFs are slated for a Tuesday launch: Bitwise’s Solana (SOL) ETF, along with Canary’s Litecoin (LTC) and Hedera (HBAR) ETFs.
The approval of the first Solana staking ETF by the US Securities and Exchange Commission (SEC) is deemed a “transformative” milestone, potentially drawing an additional $3 billion to $6 billion in new capital into the altcoin within its initial year, as noted by Ryan Lee, chief analyst at Bitget exchange.
“Solana could now attract between $3–$6 billion in its first year.”
This new ETF’s staking feature offers an additional 5% passive income for its holders, which may lead to a surge in institutional capital flowing into the broader altcoin market, beyond just ETFs, the analyst emphasized.
Staking involves locking tokens into a proof-of-stake (PoS) blockchain network for a specified period to secure the network and earn passive income in return.
New crypto-based ETFs could drive the underlying altcoins to new all-time highs. For Bitcoin (BTC), ETFs accounted for approximately 75% of new investments when Bitcoin regained the $50,000 threshold on February 15, shortly after the launch of spot BTC ETFs on January 11.
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Solana steps into the “big league” with ETF launch, marking a net positive for altcoins
Solana is entering the “big league,” standing alongside the two leading cryptocurrencies—a move that could enhance institutional adoption of the wider altcoin market, according to Lee.
“Beyond Solana itself, this initiative signifies broader acceptance of altcoins within compliant, yield-generating frameworks, funneling new capital into DeFi, real-world asset tokenization, and multi-asset ETF products,” Lee stated.
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The historic launch of US spot Bitcoin ETFs attracted $36.2 billion in investments during its first year for Bitcoin, while US spot Ether (ETH) ETFs accumulated $8.64 billion in their first year of trading, according to blockchain data aggregator SoSoValue.
Based on the adoption rates of Bitcoin and Ether ETFs, JPMorgan, a multinational investment bank, also projected that a Solana ETF would attract between $3 billion and $6 billion, while an XRP ETF could garner $4 billion to $8 billion in new placements.
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