Investors are closely watching the launch of the first Solana Staking Exchange-Traded Fund (ETF), a move expected to inject billions of dollars into Solana and the broader Altcoin market.
Somehow Three Altcoin ETFs is expected to launch later on Tuesday: Bitwise’s Solana (Sol) ETF and Canary’s Litecoin (LTC) and Hedera (Hbar) ETF, according to Bloomberg analyst Eric Balchunas.
The US Securities and Exchange Commission (SEC) approval of the first Solana Staking ETF is a “transformational” milestone that could attract an additional $3 billion to $6 billion worth of new altcoin capital within the first year, according to Bitget Exchange’s chief analyst, Ryan Lee.
“Solana could now attract between $3-$6 billion in its first year.”
The ETF’s new staking feature introduces an additional 5% passive income for its holders, an innovation that could bring more institutional capital to the broader altcoin sector beyond just ETFs, the analyst added.
Staking It means locking your tokens in a proof-of-stake (POS) blockchain network for a predetermined period to secure the network and earn passive income in return.
New crypto-based ETFs could push the underlying altcoins to all-time highs. For bitcoin (BTC), ETFs provide about 75% of new investment When Bitcoin hit the $50,000 mark on Feb.
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Solana steps into the “Big League” with ETF launch, marking net positive for altcoins
Solana will enter the “big league” alongside the two leading cryptocurrencies, a development that could boost the broader adoption of the institutional Altcoin market, according to Lee.
“Despite Solana itself, this move signals a wider acceptance of altcoins within the following, yield-generating structures, driving new capital into the defi, real-world asset tokenization, and multi-asset ETF products,” Lee said.
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Historic launch of US Spot Bitcoin ETF attracts $36.2 billion in first-year investments for bitcoin, while US spot ether (Eth) ETFs took in $8.64 billion in their first year of trading, according to blockchain Data Aggregator Sosovalue.
Based on the adoption rates of bitcoin and ether ETFs, JPMorgan, a multinational investment bank, also predicted that a Solana ETF will attract $3 billion to $6 billionwhile an XRP ETF will get $4 billion to $8 billion in new investments.
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