Investor interest in staking-oriented exchange-traded funds (ETFs) in the U.S. appears robust, highlighted by the significant inflow into Bitwise’s new Solana product on its inaugural trading day.
The Bitwise Solana Staking ETF (BSOL), which commenced trading on Tuesday, has already garnered approximately $222.8 million in assets, according to Eric Balchunas, a senior ETF analyst at Bloomberg Intelligence.
Balchunas noted that this amount is considerable for a newly launched crypto ETF, reflecting a rise in institutional involvement and confidence in staking strategies.
Previously, Bitwise launched a Solana staking exchange-traded product in Europe last year, but the U.S. version encountered delays due to regulatory uncertainties regarding staking activities.
BSOL — the first U.S. Solana ETF — provides investors exposure to Solana (SOL) along with an estimated 7% yield derived from staking rewards on the network.
As reported by Cointelegraph, this launch follows the REX-Osprey Solana Staking ETF (SSK) on June 30, which recorded around $12 million in trading volume on its first day.
Both launches are in the wake of a statement issued by the U.S. Securities and Exchange Commission’s Division of Corporation Finance on May 29, clarifying that certain proof-of-stake (PoS) activities are not deemed securities offerings under federal law.
An additional statement in August broadened those conditions to encompass certain liquid staking activities.
Related: Solana, Litecoin, Hedera ETFs to launch Tuesday: Analyst
Institutional demand for crypto ETFs remains strong
After the groundbreaking launch of U.S. spot Bitcoin (BTC) ETFs in early 2024 — followed by significant yet slower inflows into Ether (ETH) ETFs — analysts suggest that focus is now transitioning to alternative crypto assets.
In January, JPMorgan anticipated that forthcoming Solana and XRP (XRP) ETFs could attract billions of dollars in inflows within their first six months, potentially surpassing Ether’s initial performance.
The bank’s predictions were based on similar adoption rates for Bitcoin and Ether funds, estimating inflows of $3 billion to $6 billion for SOL products and $4 billion to $8 billion for XRP offerings.
Related: ‘No BlackRock, no party’ for Bitcoin, altcoin ETF investments: K33 Research
