Bitwise Sparks Industry Scramble With Solana ETF Launch

2025-11-12 02:00:58

(MENAFN- eTrendy Stock) Bitwise Asset Management launched the Bitwise Solana Staking ETF (BSOL) on October 28, 2025, marking the first spot Solana exchange-traded fund in the U.S.

The fund tracks the spot price of Solana, the sixth-largest cryptocurrency by market capitalization, and aims to stake 100% of its holdings for added yield. BSOL trades on the NYSE Arca with a management fee of 0.20%, waived to 0% for the first three months or until assets reach $1 billion.

The Solana ETF launch occurred during a U.S. government shutdown that began on October 1, 2025, and lasted until funding was restored on November 10, 2025. The shutdown halted most SEC operations, allowing Bitwise's S-1 registration, filed on October 8, 2025, to become effective automatically without agency review. This untested pathway has sparked a scramble in the crypto ETF industry, with competitors accelerating plans for similar altcoin products.

Competitors Race to Launch Altcoin ETFs

In response, 21Shares filed an S-1 registration statement with the SEC on October 29, 2025, for the 21Shares Hyperliquid ETF, which would track the price of the HYPE token. Other firms, including Canary Capital, have also moved forward with filings for spot ETFs tied to assets like Litecoin and Hedera, signaling broader interest in altcoin ETFs beyond Bitcoin and Ethereum.

BSOL has shown strong early performance. The fund attracted over $545 million in net inflows in its first week, including seed capital, despite a broader market dip. It recorded $72 million in trading volume on its second day. As of November 11, 2025, total inflows have exceeded $500 million, with consistent daily additions. This ranks BSOL among the top ETF debuts of 2025.

Implications for Crypto ETF Market

The Solana ETF launch highlights growing investor appetite for staking yields, with BSOL offering around 7% annual returns from Solana's network rewards. This could signal the start of an“altcoin season” for ETFs, as demand shifts toward diversified crypto exposure.

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