Following the recent launch of multiple crypto ETFs, Bitwise Asset Manager’s CIO predicted a bright future for the company’s Solana Staking Exchange-Traded Fund (ETF), as investors show strong initial interest in the investment product.
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The Bitwise Solana Staking ETF is off to a strong start
OnTO predicted that the Bitwise Solana Staking ETF (BSOL) could attract significant institutional interest and become one of the leading investment products based on digital assets.
Hougan claimed that Solana is “one of the most exciting crypto investment opportunities out there today,” as it is seeing “the most revenue of any blockchain.” He explained that institutional investors “love” both ETFs and income, suggesting that those investors “will love Solana ETFs.”
Bitwise’s CIO previously noted that there must be fundamental reasons for investor interest in investment instruments such as ETFs and digital asset treasuries (DATs), signaling that Solana has them. So he has a “feeling that the Bitwise Solana Staking ETF, BSOL, is going to be huge.”
Ahead of the launch, ETF expert Eric Balchunas predicted that first-day volume for Bitwise’s Solana ETF could surpass the $50 million mark. Namely, the company’s spot Bitcoin ETF (BITB) and spot Ethereum ETH (ETHW) recorded $237.9 million and $204 million, respectively, on the first day.
Hougan emphasized that Solana’s market cap is 1/20 the size of BTC and less than 1/4 the size of ETH. Based on this, the volume for the SOL ETF is expected to be lower than the volume of ETFs based on the two leading crypto assets.
According to data shared by Balchunas, BSOL recorded an impressive volume of $10 million in the first 30 minutes of trading, indicating initial demand. That amount rose to roughly $33 million by midday and reached $56 million by the end of the first day of trading.
According to the analyst, BSOL had a strong start, taking notes that its “$56 million is the HIGHEST of any launch this year.. More than XRPR, SSK, Ives and BMNU.”
Crypto ETFs launch amid government shutdown
BSOL was among the crypto ETFs launched on October 28 despite the US government shutdown. As reported by NewsBTC, Bitwise, for its Solana Staking ETF, and Canary Capital, for its spot Litecoin (LTC) and Hedera (HBAR) ETFs, filed 8-A forms on Monday to launch investment products this week despite the government shutdown.
Namely, the Securities and Exchange Commission (SEC) was supposed to approve more than a dozen altcoin ETFs between October and November after delaying the deadline for making a decision and publishing new generic standards for product listing.
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However, investors expected the long-awaited green light to be delayed until the end of the government’s work. Journalist Eleanor Terret explained that the launch is possible because no open government is required, and 8-A filings are “just as important” as S-1 forms, since they officially register ETF shares under the Securities Exchange Act of 1934.
As a result, once the NYSE has confirmed all filings for the ETFs, they could begin trading on Tuesday. Meanwhile, Grayscale’s Solana Trust ( GSOL ) will convert to an ETF on Wednesday.
Featured image from Unsplash.com, chart from TradingView.com
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