Solana is entering the mainstream with the introduction of the first Solana staking ETF, which analysts predict may result in widespread altcoin adoption among institutions.

Investors are keenly observing the arrival of the inaugural Solana staking ETF, a development anticipated to funnel billions into both Solana and the broader altcoin sphere. At least three altcoin ETFs are set to launch soon, including Bitwise’s Solana ETF and Canary’s Litecoin and Hedera ETFs, according to Bloomberg analyst Eric Balchunas.

The U.S. Securities and Exchange Commission (SEC) has granted approval for the Solana staking ETF, marking a significant step that could attract between $3 billion to $6 billion of new investment within its first year, as detailed by Ryan Lee, the chief analyst at Bitget.

“Solana could now attract between $3–$6 billion in its first year.”

The ETF’s staking capability promises an additional 5% in passive income for investors, potentially leading to increased institutional investment in the altcoin sector beyond just ETFs.

For Bitcoin, ETF launches have spurred massive investment, with previous categories accounting for about 75% of the new influx when Bitcoin reached a price of $50,000 a month after its ETF debut.

In summary, the launch of the Solana ETF signifies a significant transition for altcoins, potentially ushering in a new era of institutional acceptance and investment in decentralized finance and tokenization of real-world assets.