Bitwise Solana ETF Sees Steady Demand While Bitcoin and Ethereum Funds Lose Assets

While Bitcoin and Ethereum funds were losing assets, Bitwise’s fledgling Solana ETF generated over $126 million in net inflows in its first full week of trading, a promising sign for the SOL tracking product and possibly other altcoin funds as well.

The Bitwise Solana Staking ETF (BSOL) has generated more than $545 million in net inflows since its debut on the New York Stock Exchange on Oct. 28, including $223 million in seed investments, according to British asset manager Farside Investments. BSOL’s share price closed 5% higher on Friday.

“Inflows every day for the last 8 days since launch,” Hunter Horsely, CEO of crypto asset manager Bitwise, wrote in an X-post early Friday. “Over $500,000,000 in total. It’s clear investors want Solana exposure.”

During that period, the eleven Bitcoin ETFs lost more than $2.1 billion in assets, while net outflows for the nine Ethereum funds totaled $579 million. The Bitwise Solana fund’s promising start comes at a time when the price of SOL has fallen, part of a market-wide downturn linked to a government shutdown and other macroeconomic uncertainties.

Solana recently traded at $156, down more than 16% in the past week and nearly 29% in the past month, according to crypto markets data provider CoinGecko. Bitcoin has fallen about 16% since early October, when it rose to an all-time high above $126,000.

A Myriad forecast market found that only 13% of respondents expect Solana to surpass its all-time high of $293 by the end of the year. Myriad is part of Dastan, the parent company of an editorially independent company Declutter.

In a text message to DeclutterSenior analyst Sumit Roy of etf.com wrote that “the (Solana) influx makes sense,” noting the token’s massive market value of $90 billion: “Solana has a dedicated following, perhaps the most dedicated following after Bitcoin and Ethereum.”

He added: “It wouldn’t be surprising if Solana ETFs together represent at least 5% of that market cap. So in that context, $500 million is still small. The fact that BSOL launched at 100% stake certainly made it more attractive as well.”

The listing of the Bitwise fund and a Grayscale Solana ETF last week surprised some hopeful observers, who feared the current government shutdown would delay a regulatory process that had already taken months.

But the NYSE-certified 8-A filings offered fund managers an alternative route to the recent ETF approval process. Issuers file these forms with the SEC to register certain securities under the Securities Exchange Act of 1934. The funds met the general listing standards the SEC adopted in September for commodity-based trusts. The Grayscale Solana Trust ETF (GSOL) has received approximately $114 million in net inflows, most of which came in seed investments.

Last week, Canary’s spot Litecoin and Hedera funds began trading after the Nasdaq certified their 8-A entries. Other altcoin-focused funds benefiting from the same SEC rule change may also be available to investors soon.

In a Thursday filing with the agency, Bitwise removed a “deferral amendment” from its S-1 prospectus for the Bitwise Dogecoin ETF. If the SEC doesn’t object, the fund could begin trading within days of the filing.

“It looks like Bitwise is making the 8(a) move for their Dogecoin ETF spot, which essentially means they plan to take effect within 20 days barring an intervention,” Eric Balchunas wrote in an X-post on Thursday.