Executive Summary
The Story So Far
Why This Matters
Who Thinks What?
The Bitwise Solana Staking ETF (BSOL) has demonstrated robust investor interest, accumulating over $545 million in net inflows since its debut on October 28, 2025, on the New York Stock Exchange. This strong performance for the Solana-tracking product emerges even as spot Bitcoin and Ethereum exchange-traded funds (ETFs) have collectively experienced significant outflows.
Bitwise CEO Hunter Horsley noted the consistent inflows, which included $223 million in seed investments, indicating a clear demand for Solana exposure among investors. In contrast, the 11 spot Bitcoin ETFs have seen more than $2.1 billion in net outflows during the same period, while nine Ethereum funds recorded $579 million in outflows.
This positive reception for the Solana ETF occurs amidst a broader market downturn. Solana’s price recently traded at $156, marking a decline of over 16% in the past week and nearly 29% over the last month. Similarly, Bitcoin has fallen approximately 16% since early October, when it reached a record high above $126,000.
Regulatory Pathway for Altcoin ETFs
The launch of the Bitwise Solana fund, along with a Grayscale Solana ETF, surprised some market observers who anticipated delays due to a government shutdown. However, the NYSE certified 8-A filings, providing an alternative route for these funds to meet the generic listing standards for commodity-based trusts adopted by the SEC in September.
The Grayscale Solana Trust ETF (GSOL) also garnered approximately $114 million in net inflows, predominantly from seed investments. This regulatory development has paved the way for other altcoin-focused funds, with spot Litecoin and Hedera funds from Canary already commencing trading after similar 8-A submissions to Nasdaq.
Sumit Roy, Senior Analyst at etf.com, commented that the Solana inflows “make sense” given the token’s substantial $90 billion market value and its dedicated following. He suggested that Solana ETFs could eventually account for at least 5% of its market cap, highlighting the BSOL’s 100% staking feature as a key attraction.
Bitcoin Experiences Price Volatility
Bitcoin dipped below $100,000 for the second time last week, shedding 2.7% in 24 hours and 9.1% over the week. Despite the price drop, Bitunix analyst Dean Chen characterized the movement as a “mid-cycle shakeout” rather than a trend reversal, noting a net inflow of roughly $239 million into Bitcoin ETFs, which suggests capital rotation within the market.
Upcoming Dogecoin ETF
Further signaling expanding interest in altcoin investment vehicles, Bitwise has advanced its plans for a spot Dogecoin ETF. The firm recently removed a “delaying amendment” from its S-1 prospectus for the Bitwise Dogecoin ETF. This move could see the fund begin trading within 20 days if the SEC does not raise objections, as noted by ETF analyst Eric Balchunas.
American Bitcoin Boosts Holdings
In related news, American Bitcoin (ABTC), a Nasdaq-traded Bitcoin treasury and mining company backed by Eric Trump and Donald Trump Jr., announced a significant increase in its Bitcoin holdings. The company now holds 4,004 BTC, valued at approximately $415 million. Between October 24 and November 5, ABTC acquired an additional 139 Bitcoins, worth over $14 million, solidifying its position as the 25th largest Bitcoin treasury.
The cryptocurrency market is currently navigating a period of significant shifts, marked by strong investor interest in new altcoin ETF products like Solana, alongside price volatility in major assets like Bitcoin and the anticipation of further altcoin ETF launches.
