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

Bitwises Solana ETF kicked off trading with $223 million in assets, showing US appetite for staking-based crypto ETFs after receiving SEC clarity.

US investor appetite for staking-focused exchange-traded funds (ETFs) appears strong, as Bitwises 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.

Source: Eric Balchunas

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 Commissions 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.

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 Ethers early performance.

The banks 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.

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