Exchange-traded funds targeting smaller cryptocurrencies like Solana, Litecoin, and Hedera launched this week on major US exchanges, despite an ongoing government shutdown. The Bitwise Solana Staking ETF saw strong initial trading volume, marking the start of a broader wave of altcoin products. Issuers proceeded with listings as the Securities and Exchange Commission approved several under a more favorable regulatory environment.
This week, a series of crypto exchange-traded funds (ETFs) focused on altcoins made their Wall Street debut, even as the US government faced a shutdown. The Bitwise Solana Staking ETF (BSOL), the first of its kind with full staking exposure to Solana—the sixth-largest token—launched on Tuesday on the New York Stock Exchange. It offers a yield of around 7%, according to Dune Analytics, and traded more than $220 million in its first few hours. "BSOL is beginning life with $220 million," wrote Eric Balchunas, a Bloomberg Intelligence ETF expert. "Impressive."
BSOL is the first Solana ETF registered under the Securities Act of 1933, providing stronger investor protections, better market access, and in-kind creation and redemption of shares, which enhances accessibility through traditional brokerage channels. In contrast, prior products like DOJE and XRPR were structured under the Investment Company Act of 1940, facing more restrictions on marketing and distribution.
Additional funds followed suit. The Securities and Exchange Commission approved two ETFs from Canary Capital: a Litecoin ETF and a Hedera ETF tracking HBAR, which began trading on Nasdaq. Reports vary on the exact start date, with some indicating Tuesday and others Wednesday, but both expanded crypto offerings beyond Bitcoin and Ethereum. After their first hour, the HBAR ETF brought in $4 million, while the Litecoin ETF saw $400,000, per Balchunas. A Grayscale Solana ETF is slated to start trading on Wednesday, according to a New York Stock Exchange notice.
This surge reflects a shift under the Trump administration's crypto-friendly stance. Led by Paul Atkins, the SEC has approved products rapidly, unlike under former President Joe Biden, when most applications were blocked. Bitcoin and Ethereum ETFs, launched in 2024, have amassed over $100 billion in assets. Currently, about 155 crypto ETF applications for 35 assets await approval, with Solana and Bitcoin leading at 23 filings each, followed by XRP at 20 and Ethereum at 16. Market watchers anticipate over 200 new crypto ETFs in the next 12 months, covering layer-1 blockchains and niche DeFi tokens. Issuers are racing to file amid this regulatory thaw.