Bitwise Solana ETF Sets Records – Is This a Lasting Trend?

Bitwise’s Solana ETF crosses $70 million in volume

The Bitwise Solana Staking ETF (BSOL) has made a remarkable entry into the market with record-breaking trading volumes. Following a strong debut, the ETF shows significant interest from both retail and institutional investors. Analysts share their insights on the implications for the Solana ecosystem and the broader cryptocurrency market.

Key Takeaways

On its first day, BSOL recorded $56 million in trading volume, followed by $72.4 million on the second day, marking the highest first-day turnover among nearly 850 ETF launches this year.
Both the Canary Litecoin ETF (LTCC) and Canary HBAR ETF (HBR) are maintaining trading volumes, a rarity following an ETF's launch.
The Bitwise ETF provides U.S. investors with full direct exposure to Solana (SOL) and continues to show strong momentum.

Record-Breaking Launch

After an impressive debut, the Bitwise Solana Staking ETF (BSOL) delivered an even greater performance during its second trading session, achieving $72.4 million in volume on October 29. This follows a robust $56 million on its first day, making it the highest first-day turnover among the nearly 850 ETFs launched this year.

Expert Insights

Eric Balchunas, Senior ETF Analyst at Bloomberg, highlighted on X that "BSOL did more volume on Day Two... $72 million is a huge number. Good sign." Kyle Samani, Managing Partner at Multicoin Capital, also added, "This is truly a watershed moment. The influx of capital that can now purchase SOL, which was not previously available, is substantial."

The interest in Solana-linked exchange-traded products isn't limited to Bitwise. Other newly launched crypto ETFs are also experiencing steady trading activity.

Additional ETF Activities

Balchunas pointed out that the Canary Litecoin ETF (LTCC) and Canary HBAR ETF (HBR) maintained trading volumes around $8 million and $1 million, respectively. Typically, ETFs see a significant decline in trading volume post-launch, making these stable figures noteworthy.

Additionally, Bitwise's BSOL ETF led the field with approximately $69.5 million in first-day inflows, followed by about $46.5 million on October 29, according to Farside data. Matt Hougan, CIO at Bitwise Invest, expressed optimism on social media, saying, "I believe the Bitwise Solana Staking ETF, BSOL, will be enormous. Institutional investors favor ETFs and are attracted to revenue. Solana generates the most revenue of any blockchain, making Solana ETFs appealing to them."

Grayscale’s newly introduced Solana staking ETF (GSOL) started with around $4 million in volume, while the REX Osprey SOL Staking ETF (SSK) added about $18 million mid-week.

Market Sentiment and Trends

Despite the enthusiasm surrounding new ETFs, the overall market sentiment remains cautious. On the predictions platform Myriad, traders estimated only a 32.7% chance that Solana will reach a new all-time high before the year's end. SOL experienced mild volatility, dropping 3.1% in the past 24 hours to about $194, coinciding with Bitcoin's retreat from recent highs. However, at the time of writing, Solana had slightly recovered to $195.53, showing a 0.41% increase according to CoinMarketCap.

In summary, the broader landscape looks far from uneventful; the total daily Spot Solana ETF volume, led by the REX-Osprey SOL ETF, has already hit $1.82 billion as of October 29.

Solana ETF Volume

Source: The Block