Investors are keenly observing the launch of the initial Solana staking exchange-traded fund (ETF), an initiative anticipated to infuse billions of dollars into both Solana and the wider altcoin sector.
At least three altcoin ETFs are expected to debut later on Tuesday: Bitwise’s Solana (SOL) ETF, alongside Canary’s Litecoin (LTC) and Hedera (HBAR) ETFs, as reported by Bloomberg analyst Eric Balchunas.
The approval of the first Solana staking ETF by the US Securities and Exchange Commission (SEC) marks a “transformative” milestone that could attract an influx of $3 billion to $6 billion in new capital into the altcoin within its inaugural year, according to Ryan Lee, chief analyst at Bitget exchange.
“Solana could now attract between $3–$6 billion in its first year.”
The staking feature of the new ETF introduces an additional 5% passive income for holders, a factor that may entice more institutional capital into the broader altcoin market beyond merely ETFs, the analyst added.
Staking involves locking tokens into a proof-of-stake (PoS) blockchain network for a specified duration to secure the network and earn passive income in return.
New crypto-based ETFs could propel the underlying altcoins to unprecedented highs. For Bitcoin (BTC), the ETFs constituted approximately 75% of new investments when Bitcoin regained the $50,000 mark on Feb. 15, shortly after the debut of spot BTC ETFs on Jan. 11.
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Solana steps into “big league” with ETF launch, marking net positive for altcoins
Solana is entering the “big league” alongside the two dominant cryptocurrencies, a development that could enhance institutional adoption of the wider altcoin market, according to Lee.
“Beyond Solana itself, this move indicates greater acceptance of altcoins within compliant, yield-generating structures, resulting in new capital influx into DeFi, real-world asset tokenization, and multi-asset ETF products,” Lee stated.
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The groundbreaking launch of US spot Bitcoin ETFs attracted $36.2 billion in investments during their first year, while US spot Ether (ETH) ETFs drew in $8.64 billion throughout their inaugural trading year, according to blockchain data aggregator SoSoValue.
Based on the adoption trends of Bitcoin and Ether ETFs, multinational investment bank JPMorgan predicted 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 investments.
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