US investor appetite for staking-focused exchange-traded funds (ETFs) appears strong, as Bitwise’s new Solana exchange-traded product kicked off with over $220 million in assets on debut.
The Bitwise Solana Staking ETF (BSOL) began trading on Tuesday with $222.8 million in assets, according to Bloomberg Intelligence senior ETF analyst Eric Balchunas.
Balchunas said the size was significant for a newly launched crypto ETF and indicated increased institutional engagement and confidence in staking strategies.
Bitwise previously launched a Solana staking exchange-traded product in Europe last year, but the US version faced delays due to regulatory uncertainty surrounding staking activities.
BSOL offers investors exposure to Solana (SOL) and an estimated 7% yield derived from staking rewards on the network.
The launch follows the REX-Osprey Solana Staking ETF (SSK) on June 30, which saw around $12 million in first-day trading volume.
Both launches came after the US Securities and Exchange Commission’s Division of Corporation Finance issued a May 29 staff statement clarifying that certain proof-of-stake (PoS) activities do not constitute securities offerings under federal law.
A follow-up statement in August expanded those conditions to include certain liquid staking activities.
Related: Solana, Litecoin, Hedera ETFs to launch Tuesday: Analyst
Institutional demand for crypto ETFs remains strong
Following the blockbuster debut of US spot Bitcoin (BTC) ETFs in early 2024 — and the slower but ultimately substantial inflows into Ether (ETH) ETFs — analysts say attention is now shifting toward alternative crypto assets.
In January, JPMorgan projected that upcoming Solana and XRP (XRP) ETFs could draw billions of dollars in inflows within their first six months of trading, potentially even outpacing Ether’s early performance.
The bank’s forecast was based on comparable adoption rates of Bitcoin and Ether funds, estimating $3 billion to $6 billion in inflows for SOL funds and $4 billion to $8 billion for XRP products.
Related: ‘No BlackRock, no party’ for Bitcoin, altcoin ETF investments: K33 Research