Bitwise Solana ETF Sees Steady Demand as Bitcoin, Ethereum Funds Shed Assets

While Bitcoin and Ethereum funds shed assets, Bitwise’s fledgling Solana ETF recorded more than $126 million in net inflows in its first full week of trading. This bodes well for SOL tracking products, and potentially other altcoin funds as well.

The Bitwise Solana Staking ETF (BSOL) has generated more than $545 million in net inflows since listing on the New York Stock Exchange on October 28, including $223 million in seed investment, according to British asset management firm Pharcyde Investments. BSOL stock ended Friday trading up 5%.

Hunter Horsley, CEO of virtual currency asset management company Bitwise, wrote on XPost early Friday morning that “inflows have continued every day for eight days since launch.” “Over $500 million in total. It’s clear that investors want exposure to Solana.”

During this period, 11 Bitcoin Spot ETFs lost more than $2.1 billion in assets, and nine Ethereum funds had net outflows totaling $579 million. The Bitwise Solana Fund is off to a promising start despite SOL’s price decline as part of the overall market downturn related to the government shutdown and other macroeconomic uncertainties.

Solana has recently been trading at $156, having fallen more than 16% in the last week and nearly 29% in the last month, according to crypto market data provider CoinGecko. Bitcoin has fallen about 16% since rising to an all-time high of more than $126,000 in early October.

According to Myriad’s prediction market, only 13% of respondents expect Solana to surpass its all-time high of $293 by the end of the year. Myriad is a division of Dastan, the editorially independent company’s parent company. Decrypt.

by text to decryption“The influx[of Solana]makes sense,” said Sumit Roy, senior analyst at etf.com, pointing to the token’s massive $90 billion market value.

He added: “It would not be surprising if the Solana ETFs together accounted for at least 5% of its market capitalization. In that sense, $500 million is still small. The fact that BSOL was founded as a 100% equity investment certainly added to its appeal.”

The listing of the Bitwise Fund and Grayscale Solana ETF last week surprised some hopefuls who were worried that the current government shutdown would delay a regulatory process that has already taken months.

However, the New York Stock Exchange recently certified an 8-A application that provides fund managers with an alternative route to the ETF approval process. Issuers file these forms with the SEC to register certain securities under the Securities Exchange Act of 1934. The fund met the general listing standards adopted by the SEC for commodity-based trusts in September. The Grayscale Solana Trust ETF (GSOL) had approximately $114 million in net inflows, most of which were seed investments.

Last week, Canary Spotlight Coin and Hedera Fund began trading after Nasdaq certified their 8-A filing. Other altcoin-focused funds that benefit from the same SEC rule changes may soon become available to investors.

In a filing with the agency on Thursday, Bitwise removed the “delayed amendment” from the Bitwise Dogecoin ETF’s S-1 prospectus. If the SEC does not object, the fund could begin trading within as little as 20 days after filing.

“Bitwise appears to be making an 8(a) move for the Spot Dogecoin ETF, which basically means it is scheduled to go into effect within 20 days without intervention,” Eric Balchunas wrote in an X post on Thursday.