Solana News Update: Solana ETF Climbs While Token Declines: Institutional Demand Contrasts with Retail Outlook

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Solana News Update: Solana ETF Climbs While Token Declines: Institutional Demand Contrasts with Retail Outlook

Bitget-RWA2025/10/28 23:02

By:Bitget-RWA

- Bitwise's Solana Staking ETF (BSOL) raised $222.8M in assets on its 2025 debut, outpacing most new ETFs with $56M in first-day trading volume. - The fund offers direct Solana exposure with staking rewards, attracting institutional interest through a novel structure distinct from traditional spot ETFs. - SEC guidance on PoS and liquid staking enabled BSOL's launch, with Bitwise leveraging its European staking product experience to enter the U.S. market. - Despite BSOL's success, Solana's token price fell

The Bitwise

Solana

Staking ETF (BSOL) made a notable entrance, amassing $222.8 million in assets and $55 million in trading volume on its first day—one of the most impressive launches for a crypto-related ETF in 2025. This fund, which provides direct access to Solana (SOL) and distributes staking rewards, has attracted institutional interest due to its innovative structure, setting it apart from conventional spot ETFs,

an EthNews report

highlighted. According to Bloomberg ETF analyst Eric Balchunas, BSOL’s asset total already equals half that of the Solana Spot ETF (SSK), an achievement reached on its opening day,

FinanceFeeds reported

The ETF’s strong debut was further emphasized by its active initial trading. Within the first 30 minutes after launching on October 27,

BSOL

saw $10 million in trades, surpassing the $4 million and $400,000 volumes posted by the HBAR and

Litecoin

ETFs, respectively,

CryptoBriefing reported

. By the close of the day, trading volume had reached $56 million, making it the top-performing ETF launch among more than 850 new funds in 2025,

BeInCrypto reported

. This surge demonstrates increasing institutional demand for exposure to alternative cryptocurrencies, especially in networks like Solana, which has experienced significant growth in decentralized finance (DeFi) and tokenization projects, as EthNews also mentioned.

Solana News Update: Solana ETF Climbs While Token Declines: Institutional Demand Contrasts with Retail Outlook image 0

Clear regulatory guidance was crucial for BSOL’s introduction. The U.S. Securities and Exchange Commission (SEC) issued guidance in May 2025 regarding proof-of-stake (PoS) activities and clarified rules for liquid staking in August, paving the way for ETFs based on staking, as previously reported. Bitwise, which had already launched a Solana staking product in Europe, used this regulatory framework to bring BSOL to the U.S. The fund features a 0.20% expense ratio, holds assets in full replication, and reported a net asset value (NAV) of $26.21 as of October 27, according to available reports.

Even with the ETF’s strong performance, Solana’s native token (SOL) dropped 3.65% that day, illustrating a gap between institutional ETF interest and retail token price movement, a phenomenon discussed by BeInCrypto. Analysts point to profit-taking after the initial excitement and broader market trends as reasons. Meanwhile, BlackRock’s absence—a major player in

Bitcoin

ETF inflows—has led to doubts about whether altcoin ETFs can match Bitcoin’s $28.1 billion inflow in 2025,

Coinotag warned

. Nevertheless, analysts from JPMorgan and Bitget estimate that a Solana ETF could still attract between $3 billion and $6 billion in its first year, fueled by staking returns and ecosystem expansion,

CoinMarketCap reported

The regulatory landscape is still evolving, with over 150 altcoin ETF applications awaiting approval—including 23 for Solana—according to

a Coinotag analysis

. Although the U.S. government shutdown has delayed approvals beyond October, the influx of institutional funds into products like BSOL points to a maturing market. As more staking-oriented ETFs are introduced, they may reshape how institutions access crypto yields, further connecting traditional finance with blockchain technology.

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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