Bitwise Launches SOL Staking ETF with $223 Million in First Day, Reflecting Strong Institutional Interest

Bitwise SOL staking ETF debuts with $223M, signaling strong institutional demand

Investor interest in staking-focused exchange-traded funds (ETFs) in the U.S. remains robust, as demonstrated by Bitwise's newly launched Solana product. The Bitwise Solana Staking ETF (BSOL) saw impressive influx on its debut, signaling strong confidence from institutional investors in staking strategies.

Key Takeaways

Bitwise's Solana Staking ETF debuted with approximately $222.8 million in assets on its first trading day.
Eric Balchunas from Bloomberg Intelligence highlighted the substantial inflow as a sign of rising institutional engagement in crypto.
This ETF provides exposure to Solana and is predicted to yield around 7% from staking rewards.
The launch follows previous ETF offerings for Solana and other crypto assets, reflecting ongoing interest in ETFs among institutions.
Analysts project that more crypto ETFs could generate billions in inflows within six months of their launch.

Strong Start for Bitwise’s Solana Staking ETF

On Tuesday, the Bitwise Solana Staking ETF (BSOL) made its debut, garnering about $222.8 million in assets on its first day of trading. Eric Balchunas, a senior ETF analyst at Bloomberg Intelligence, described this figure as significant for a newly established crypto ETF, indicating heightened interest and confidence from institutional investors in staking investment strategies.

Source: Eric Balchunas

Previously, Bitwise introduced a Solana staking exchange-traded product in Europe last year. However, the launch in the U.S. experienced delays due to uncertainties regarding regulatory compliance for staking activities. BSOL is notable as the first Solana ETF available in the U.S. market, offering investors insights into Solana and expected gains of about 7% through staking rewards on the Solana network.

As reported by Cointelegraph, this launch follows the introduction of the REX-Osprey Solana Staking ETF (SSK) on June 30, which recorded around $12 million in trading volume during its opening day. These developments occurred after the U.S. Securities and Exchange Commission clarified, in a staff statement dated May 29, that certain proof-of-stake (PoS) activities do not qualify as securities offerings under federal law. An additional statement in August further expanded these definitions to cover certain liquid staking activities.

Continued Institutional Interest in Crypto ETFs

The enthusiastic response to the Bitwise Solana Staking ETF mirrors the excitement surrounding U.S. spot Bitcoin ETFs, which experienced a remarkable debut in early 2024, along with the gradual but notable influx into Ether ETFs. Analysts have now turned their focus to alternative cryptocurrencies and assets, as interest shifts.

In January, JPMorgan projected that upcoming ETFs for Solana and XRP could attract billions of dollars in inflows within their first six months. These forecasts suggest that SOL funds might draw between $3 billion and $6 billion, while XRP-related products could see inflows ranging from $4 billion to $8 billion. The estimates were based on adoption rates observed with Bitcoin and Ether funds.

JPMorgan estimates potential inflows into SOL and XRP ETFs. Source: JPMorgan

As the landscape for cryptocurrency investments continues to evolve, these robust inflows into newly launched ETFs indicate a growing acceptance and confidence in the market from institutional investors.