Bitwise Solana ETF Defies Crypto Downturn with $545M Inflows

The Bitwise Solana Staking ETF (BSOL) has generated more than $545 million in net inflows since its October 28 debut on the New York Stock Exchange, including $223 million in seed investments, according to data from UK asset manager Farside Investments. This strong performance included $126 million in net inflows during its first full week of trading alone, with BSOL’s share price closing up 5% in Friday trading. Bitwise CEO Hunter Horsely emphasized the consistent demand, noting in an X post that the fund has seen “inflows every day for the last 8 days since its launch” and that “it’s clear investors want Solana exposure.”

This success stands in stark contrast to the broader cryptocurrency ETF market. During the same period, the 11 spot Bitcoin ETFs have lost more than $2.1 billion in assets, while net outflows for the nine Ethereum funds have totaled $579 million. The divergence is particularly notable given Solana’s price performance, with SOL recently trading at $156 according to CoinGecko data – down more than 16% for the past week and nearly 29% over the last month. Bitcoin has declined about 16% since early October when it reached a record high above $126,000.

The listing of both Bitwise’s and Grayscale’s Solana ETFs surprised market observers who had feared the current government shutdown would delay regulatory approvals. The funds utilized NYSE-certified 8-A filings, which offered an alternative route to the traditional ETF approval process. These forms, filed with the SEC to register securities under the Securities Exchange Act of 1934, allowed the funds to meet the generic listing standards adopted by the SEC in September for commodity-based trusts.

According to etf.com Senior Analyst Sumit Roy, the Solana inflows “make sense” given the token’s massive $90 billion market value. “Solana has a devoted following, arguably the most devoted following after Bitcoin and Ethereum,” Roy wrote in a text to Decrypt. He added that “it wouldn’t be surprising to see Solana ETFs collectively account for 5% of that market cap at the very least. So in that context, $500M is still small. The fact that BSOL launched with 100% staking certainly made it more attractive as well.”

The Grayscale Solana Trust ETF (GSOL) has also seen significant interest, receiving about $114 million in net inflows, though most were seed investments. The success of these Solana-focused products comes despite bearish market sentiment, with a Myriad prediction market finding that only 13% of respondents expect Solana to surpass its record high of $293 by year’s end.

The regulatory pathway established by the Solana ETFs is already spawning additional altcoin-focused investment products. Last week, spot Litecoin and Hedera funds from Canary began trading after the Nasdaq certified their 8-A submissions. Meanwhile, Bitwise has taken a significant step toward launching a Dogecoin ETF by removing a “delaying amendment” from its S-1 prospectus for the Bitwise Dogecoin ETF.

As Bloomberg ETF analyst Eric Balchunas noted in an X post, “Looks like Bitwise is doing the 8(a) move for their spot Dogecoin ETF, which basically means they plan on going effective in 20 days barring an intervention.” This suggests the fund could begin trading in as few as 20 days from submission if the SEC doesn’t object, signaling continued expansion of altcoin-focused investment products despite regulatory uncertainties and market volatility.

The success of the Bitwise Solana ETF during a period of broader crypto market weakness demonstrates a shifting landscape for cryptocurrency investment vehicles. While Bitcoin and Ethereum ETFs experience significant outflows, investor appetite for alternative cryptocurrency exposure through regulated products appears to be growing, potentially paving the way for further diversification in the crypto ETF space as more altcoin funds benefit from the same SEC rule change that enabled the Solana ETFs’ launch.