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

A strong first-day haul positions Bitwises Solana fund as a test case for US appetite toward staking-based crypto ETFs after new SEC clarity.

Investor appetite for staking-focused exchange-traded funds (ETFs) in the United States appears strong, with Bitwises new Solana product seeing substantial inflows on its first day of trading.

The Bitwise Solana Staking ETF (BSOL), which began trading on Tuesday, has already attracted roughly $222.8 million in assets, according to Bloomberg Intelligence senior ETF analyst Eric Balchunas.

Balchunas characterized the size as significant for a newly launched crypto ETF, indicating increasing 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 — the first US Solana ETF — offers investors exposure to Solana (SOL) and an estimated 7% yield derived from staking rewards on the network.

As Cointelegraph reported, 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.

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 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

Related: ‘No BlackRock, no party’ for Bitcoin, altcoin ETF investments: K33 Research