Solana ETFs May See Strong Demand After Launch
Solana (SOL) exchange-traded funds (ETFs) could attract strong investor interest. K33 analysts say spot SOL ETFs show clear signs of demand. This comes as other altcoin ETFs might have weaker inflows, partly due to BlackRock’s absence in this market.
Early ETF Performance and Market Trends
- VolatilityShares’ 2x leveraged long SOL ETF holds about 2.28 million SOL worth of exposure.
- Bitwise Solana ETF (BSOL) gained $56 million on its first trading day.
- Canary’s Litecoin (LTC) and Hedera (HBAR) ETFs saw $1 million and $8 million inflows, respectively.
K33 warns smaller altcoin ETFs could struggle for attention in the crowded market. Analyst Vetle Lunde said some funds might “fade into irrelevance” due to competition.
Impact of BlackRock’s Absence on Altcoin ETFs
BlackRock, a major player in crypto ETFs, is not entering the altcoin ETF market. The firm focuses on Bitcoin (IBIT) and Ethereum (ETHA) products instead. This absence might limit total inflows into altcoin ETFs despite opportunities for smaller issuers.
In 2025, US Bitcoin ETFs saw $26.86 billion in net inflows. Without BlackRock’s IBIT product, these ETFs would show $1.27 billion in outflows.
K33 notes that altcoin ETFs may get less institutional confidence and liquidity without BlackRock. However, this creates chances for other asset managers to grow by offering reliable and transparent altcoin ETFs.
Grayscale’s Litecoin trust is also expected soon, but K33 predicts a weaker outlook for LTC ETFs because of Grayscale’s market position.
At publication, Solana trades near $195, down just over 2% in the last 24 hours.
