Bitwise Solana ETF Sees $56M Launch Amid Government Shutdown

The Bitwise Solana Staking ETF (BSOL) recorded an impressive $56 million in trading volume on its first day, marking the highest launch volume of any ETF this year according to ETF expert Eric Balchunas. The fund’s performance surpassed other recent launches including XRPR, SSK, Ives and BMNU, demonstrating significant investor interest despite Solana’s smaller market capitalization compared to leading cryptocurrencies. BSOL showed strong momentum throughout its debut day, starting with $10 million in the first 30 minutes of trading, surging to approximately $33 million by the half-day mark, and ultimately reaching the $56 million milestone by market close.

This initial performance provides validation for Bitwise CIO Matt Hougan’s pre-launch optimism, where he predicted BSOL could attract significant institutional interest. Hougan had pointed to Solana recording ‘the most revenue of any blockchain’ as a key fundamental driver, arguing that institutional investors ‘love both ETFs and revenue,’ which suggests they would ‘love Solana ETFs.’ The strong first-day volume, while smaller than Bitwise’s spot Bitcoin ETF (BITB) which recorded $237.9 million and spot Ethereum ETF (ETHW) with $204 million on their respective first days, reflects Solana’s relative market position – with Solana’s market capitalization being 1/20th the size of Bitcoin and less than 1/4th the size of Ethereum.

BSOL was among several crypto ETFs that launched successfully on October 28 despite the ongoing US government shutdown, demonstrating the resilience of certain regulatory processes. According to journalist Eleanor Terret, the launch was possible because an open government isn’t required for 8-A filings, which are ‘just as important’ as S-1 forms as they formally register ETF shares under the Securities Exchange Act of 1934. After the NYSE certified all filings for the ETFs, they were cleared to begin trading on Tuesday, bypassing the typical SEC approval process that would have been stalled during the shutdown.

The Securities and Exchange Commission (SEC) had been expected to approve over a dozen altcoin ETFs between October and November after delaying decision deadlines and releasing new generic listing standards for the products. However, investors had anticipated that the long-awaited approvals would be delayed until the end of the government shutdown. Bitwise, for its Solana Staking ETF, and Canary Capital, for its spot Litecoin (LTC) and Hedera (HBAR) ETFs, filed their 8-A forms on Monday to launch the investment products this week, taking advantage of the regulatory pathway that remained open despite broader government closures.

The successful launch of BSOL signals a broadening institutional interest in cryptocurrency investment products beyond the established Bitcoin and Ethereum offerings. Matt Hougan’s characterization of Solana as ‘one of the most exciting crypto investment opportunities that exists today’ reflects a growing recognition among asset managers that alternative blockchain networks with strong fundamentals can attract institutional capital. Hougan emphasized that there must be fundamental reasons for investors’ interest in investment vehicles such as ETFs and Digital Asset Treasuries (DATs), and he believes Solana possesses these essential qualities.

The expanding crypto ETF landscape continues to evolve rapidly, with Grayscale’s Solana Trust (GSOL) set to convert into an ETF on Wednesday, further increasing institutional accessibility to Solana investments. This conversion, combined with BSOL’s strong debut, suggests that institutional investors are becoming more comfortable with the crypto ecosystem’s diversity and are seeking exposure to blockchain networks that demonstrate strong revenue generation and technological innovation. The simultaneous launch of multiple crypto ETFs during challenging regulatory conditions indicates that the infrastructure supporting digital asset investments has matured sufficiently to withstand political and operational disruptions.