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Solana ETFs may attract $6B in first year as SOL joins ‘big league’

Investors are closely watching the launch of the first Solana staking exchange-traded fund (ETF), a move expected to inject billions of dollars into Solana and the broader altcoin market.

At least three altcoin ETFs are expected to launch later on Tuesday: Bitwise’s Solana (SOL $200.05) ETF and Canary’s Litecoin (LTC $101.25)and Hedera (HBAR $0.21) ETFs, according to Bloomberg analyst Eric Balchunas.

The US Securities and Exchange Commission’s (SEC) approval of the first Solana staking ETF is a “transformative” milestone that may attract an additional $3 billion to $6 billion worth of new capital into the altcoin within the first year, according to Bitget exchange’s chief analyst, Ryan Lee.

Solana could now attract between $3–$6 billion in its first year.

The new ETF’s staking feature introduces an additional 5% passive income for its holders, a dynamic that may bring more institutional capital into the wider altcoin sector beyond just ETFs, added the analyst.

Staking means locking your tokens into a proof-of-stake (PoS) blockchain network for a predetermined period to secure the network and earn passive income in exchange.

Source: EricBalchunas

New crypto-based ETFs may propel the underlying altcoins to all-time highs. For Bitcoin (BTC $114,526), the ETFs accounted for about 75% of new investment when Bitcoin recaptured the $50,000 mark on Feb. 15, less than a month after spot BTC ETFs debuted on Jan. 11.

Solana steps into “big league” with ETF launch, marking net positive for altcoins

Solana is stepping into the “big league” next to the two leading cryptocurrencies, a development that could bolster the wider altcoin market’s institutional adoption, according to Lee.

“Beyond Solana itself, this move signals broader acceptance of altcoins within compliant, yield-generating structures, driving new capital into DeFi, real-world asset tokenization, and multi-asset ETF products,” Lee said.

The historic launch of the US spot Bitcoin ETFs attracted $36.2 billion in investments during the first year for Bitcoin, while the US spot Ether (ETH $4,115) ETFs amassed $8.64 billion during their first year of trading, according to blockchain data aggregator SoSoValue.

SOL and XRP ETPs could attract $3 billion–$8 billion. Source: JP Morgan

Based on the adoption rates of Bitcoin and Ether ETFs, JPMorgan, a multinational investment bank, also predicted that a Solana ETF would attract $3 billion to $6 billion, while an XRP ETF would garner $4 billion to $8 billion in new investments.

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Cointelegraph Team

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