Bitwise Solana ETF Sees Steady Demand as Bitcoin Ethereum
According to British asset manager Farside Investments, the Bitwise Solana Staking ETF (BSOL) has attracted net investments of over $545 million since its debut on the New York Stock Exchange on October 28, including an initial investment of $223 million. BSOL's share price closed 5% higher in Friday trading.
While Bitcoin and Ethereum funds lost assets, Bitwise's new Solana ETF attracted net investments of over $126 million in its first full trading week, a positive sign for the SOL-tracking product and potentially other altcoin funds.
According to British asset manager Farside Investments, the Bitwise Solana Staking ETF (BSOL) has attracted net investments of over $545 million since its debut on the New York Stock Exchange on October 28, including an initial investment of $223 million. BSOL's share price closed 5% higher in Friday trading.
Hunter Horsley, CEO of crypto asset manager Bitwise, wrote in an X post on Friday morning, "Investments have been coming in every day for the past 8 days since launch. Totaling over $500,000,000. It's clear that investors want to invest in Solana."
During this period, 11 spot Bitcoin ETFs have lost over $2.1 billion in assets, while nine Ethereum funds have seen net outflows of $579 million. The promising launch of the Bitwise Solana Fund comes at a time when Solana's price is declining, part of a market-wide downturn linked to government shutdowns and other macroeconomic uncertainties.
According to crypto market data provider CoinGecko, Solana was recently trading at $156, down more than 16% last week and nearly 29% last month. Bitcoin has fallen by nearly 16% since early October, when it reached a record high above $126,000.
Myriad's forecast market found that only 13% of respondents expect Solana to surpass its record high of $293 by the end of the year. Myriad is a unit of Dastan, the parent company of the editorially independent Decrypt.
In a message to Decrypt, Sumit Roy, senior analyst at etf.com, wrote, "The (Solana) investment is worthwhile," and citing the token's massive market capitalization of $90 billion, he added: "Solana has a dedicated following, possibly the most dedicated following after Bitcoin and Ethereum."
He added: "It wouldn't be surprising if the Solana ETF collectively contributes at least 5% to that market capitalization. So, in that context, $500 million is still low. The launch of BSOL with 100% equity certainly makes it even more attractive."
The listings of the Bitwise Fund and Grayscale Solana ETFs last week surprised some optimistic observers who feared that the ongoing government shutdown would delay the regulatory process, which has already taken months.
But the NYSE certified the 8-A filing, giving fund managers an alternative way to bypass the recently introduced ETF approval process. Issuers file these forms with the SEC to register certain securities under the Securities Exchange Act of 1934. These funds conform to the General Listing Standards for Commodity-Based Trusts adopted by the SEC in September. The Grayscale Solana Trust ETF (GSOL) has received net investment of approximately $114 million, most of which is initial investment.
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