Investor interest in staking-related exchange-traded funds (ETFs) in the U.S. is evidently strong, with Bitwise’s latest Solana fund capturing significant investments on its debut.
The Bitwise Solana Staking ETF (BSOL) commenced trading on Tuesday and immediately gathered approximately $222.8 million in assets, a reflection of heightened institutional participation, as noted by Bloomberg Intelligence’s senior ETF analyst, Eric Balchunas.
Balchunas referred to this initial investment as particularly notable for a newly launched crypto ETF, indicating a growing confidence in staking strategies among institutional players.
Source: Eric Balchunas
Bitwise previously launched a Solana staking product in Europe last year; however, the U.S. version faced delays owing to regulatory uncertainties surrounding staking activities.
BSOL represents the inaugural U.S. Solana ETF, providing investors with exposure to Solana (SOL) and an estimated 7% yield from staking rewards.
Earlier, Cointelegraph reported on the launch of the REX-Osprey Solana Staking ETF (SSK) on June 30, which recorded roughly $12 million in trading volume on its first day.
Both ETF launches occur following a clarifying statement issued by the U.S. Securities and Exchange Commission’s Division of Corporation Finance on May 29, which explained that certain proof-of-stake activities are not considered securities offerings under federal law. A subsequent August announcement further elaborated on conditions related to specific liquid staking activities.
Continued Institutional Interest in Crypto ETFs
In the wake of the successful rollout of U.S. spot Bitcoin (BTC) ETFs in early 2024 — alongside the steady inflow into Ether (ETH) ETFs — analysts indicate that focus is shifting toward alternative crypto assets.
In January, JPMorgan anticipated that the forthcoming Solana and XRP (XRP) ETFs could attract billions within the first six months of trade, potentially outpacing Ether’s initial performance.
The bank estimated that Solana funds could garner between $3 billion to $6 billion and XRP products $4 billion to $8 billion based on adoption parallels with Bitcoin and Ether funds.
