tl;dr
Bitwise’s Solana Staking ETF (BSOL) shattered expectations on its debut day, hitting $55.4 million in trading volume—setting a 2025 crypto ETF record. The product outperformed rival ETFs from Canary Capital and highlighted growing institutional interest in altcoins. Regulatory clarity from the SEC o...
**Bitwise’s Solana Staking ETF Surpasses Expectations, Sparking Institutional Interest in Crypto Altcoins**
Bitwise’s Solana Staking ETF (BSOL) made a resounding debut on Tuesday, generating $55.4 million in trading volume on its first day—a record for a crypto ETF in 2025, according to Bloomberg ETF analyst Eric Balchunas. The product outperformed two other cryptocurrency ETFs launched by Canary Capital, signaling growing institutional confidence in staking-based investment vehicles and broader interest in altcoins beyond Bitcoin (BTC) and Ether (ETH).
BSOL, which tracks Solana’s staking rewards, opened with $10 million in trades within the first 30 minutes, far outpacing Canary Capital’s HBAR ETF (HBR) and Litecoin ETF (LTCC), which recorded $4 million and $400,000 in the same period. Balchunas noted that BSOL’s $55.4 million volume surpassed his pre-launch forecast of $52 million, while HBR met expectations with $8 million and LTCC fell short at $1 million. The ETF’s success underscores a shift in investor appetite, as asset managers increasingly explore products tied to riskier or uniquely structured cryptocurrencies.
The surge in demand for BSOL reflects heightened institutional engagement with staking, a mechanism where users lock up crypto to validate blockchain transactions and earn rewards. Balchunas highlighted that the ETF had over $223 million in assets before its launch, indicating strong pre-market confidence. This aligns with broader regulatory progress: In May, the SEC clarified that certain proof-of-stake (PoS) activities do not constitute securities offerings, and in August, the agency extended this guidance to liquid staking programs, paving the way for ETFs like BSOL.
Bitwise had previously launched a Solana staking product in Europe but delayed its U.S. counterpart due to regulatory uncertainty. The company’s U.S. fund now debuts weeks after the REX Osprey Solana Staking ETF (SSK) launched on June 30, which recorded $12 million in first-day volume. Bitwise’s entry into the market further solidifies its position as a leading issuer of crypto-linked ETFs, which already include Bitcoin and Ether products.
While BSOL’s debut was impressive, it remains a fraction of the $1.08 billion in trading volume seen by nine spot Ether ETFs in July 2024. Grayscale’s Ethereum Trust accounted for $458 million of that total, followed by BlackRock’s iShares Ethereum Trust with $248.7 million. Bitwise’s spot Ether ETF also saw $94.3 million in trading, highlighting the continued dominance of Ethereum ETFs. However, the success of BSOL suggests a growing appetite for altcoin-focused products.
Analysts note that investors are diversifying beyond BTC and ETH, with interest in networks like Solana, Avalanche, and XRP. JPMorgan projected in January that Solana and XRP ETFs could attract $3 billion to $8 billion in inflows within six months of launch, mirroring the adoption patterns of earlier crypto funds. This trend reflects improving market sentiment and a broader recognition of the utility of staking in decentralized networks.
The regulatory clarity around staking has been pivotal. Following the SEC’s guidance, issuers can now structure ETFs to provide exposure to staking yields without triggering securities law complications. This has accelerated the launch of products like BSOL, which offers a regulated pathway for investors to participate in Solana’s ecosystem.
As the crypto ETF landscape evolves, the success of BSOL and similar products signals a maturing market. With institutional demand rising and regulatory hurdles being addressed, staking-based ETFs could become a cornerstone of diversified crypto portfolios. For now, Bitwise’s Solana ETF stands as a testament to the growing intersection of traditional finance and blockchain innovation.