Key Takeaways

Solana’s ETF had significant demand, amassing $56 million in volume, but SOL's price fell by 3.6%.
Traders are becoming more selective, preferring assets with robust fundamentals or staking opportunities instead of getting caught up in initial listing excitement.

On October 27, the first set of U.S. altcoin ETFs was launched, marking an important milestone in the expansion of regulated cryptocurrency products beyond Bitcoin and Ethereum. The new ETFs for Solana, Hedera, and Litecoin were introduced under the tickers $BSOL, $HBR, and $LTCC, achieving a total trading volume of $65 million on their first day. However, the reactions of the underlying tokens varied significantly.

Solana ($SOL): Strong ETF Launch but Price Decline

The $BSOL ETF from Bitwise experienced an impressive day-one volume of $56 million, the highest for any ETF launch this year. Despite this, Solana's spot price fell by 3.65%, trading around $191 after touching a high of $203. According to technical analysis from TradingView, the RSI stands at 45, indicating a neutral to weak momentum as traders adjusted their expectations post-launch. This decrease suggests a classic market behavior of “buy-the-rumor, sell-the-news,” with investors cashing in on profits after the ETF's introduction.

Solana price trend Source: TradingView

Hedera ($HBAR): Modest ETF Volume, Strong Price Surge

On the other hand, Hedera’s $HBR ETF saw a modest $8 million in trading but resulted in a notable daily price increase of 4.9%, bringing its value up to $0.193. The RSI for Hedera rose to 53, indicating a resurgence of bullish sentiment among investors. This unexpected price jump, in contrast to its limited ETF trading volume, suggests that retail traders and smaller investment funds might be shifting their focus toward lower-cap Layer-1 assets, potentially anticipating future staking yields or additional ETF investments.

Hedera price trend Source: TradingView

Litecoin ($LTC): Low Interest in ETFs and Weak Performance

Litecoin's $LTCC ETF lagged behind with only $1 million in its initial trading day. In terms of price movement, LTC experienced a decline of 3.3%, falling to $96 with an RSI around 43, suggesting a lack of solid demand. This tepid reception indicates that Litecoin is perceived more as a traditional cryptocurrency rather than an innovative player in the market. Unless trading volumes pick up in the days ahead, the interest in this ETF might remain confined to a small group of institutional investors.

Litecoin price trend Source: TradingView

Market Analysis

The varied performance of these altcoins demonstrates that simply launching ETFs does not guarantee an immediate increase in market prices. Investors are exercising caution and prioritizing assets that show significant network growth or attractive staking options, while others seem to be engaging in profit-taking. Nevertheless, the successful launch of three non-BTC and non-ETH spot ETFs indicates a developing U.S. market that is eager to explore altcoin investments through regulated avenues.