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The Bitwise Solana Staking ETF launches with $223M in assets

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US investor appetite for staking-focused exchange-traded funds (ETFs) appears strong, as Bitwise’s new Solana exchange-traded product has more than $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 an increase in institutional engagement and confidence in staking strategies.

Bitwise previously launched A Solana exchange traded product in Europe last year, but the US version has faced delays due to regulatory uncertainty surrounding staking activities.

BSOL offers investors exposure to Solana (Sol) and an estimated 7% yield derived from network staking rewards.

The launch follows the Rex-Osprey Solana Staking ETF (SSK) on June 30, which saw around $ 12 million in trading volume on the first day.

Both launches came after the US Securities and Exchange Commission’s Division of Corporation Finance issued a May 29 staff statement clarifying that some proof-of-stake (POS) activities Do not constitute securities offerings under federal law.

A follow-up statement in August expanded those conditions to include some 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 large inflow into ether (Eth) ETFS – Analysts say they are now moving towards alternative crypto assets.

In January, JPMorgan expected Solana and XRP to come (XRP) ETFs can draw billions of dollars in inflows within their first six months of trading, potentially even surpassing Ether’s early performance.

The bank’s forecast is 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.