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The first US spot exchange-traded funds (ETF) for Solana Hedera (HBAR) and began trading on Tuesday, opening a new door for investors seeking regulated exposure to crypto assets beyond bitcoin and ether.
If the initial momentum holds, Solana’s ETF alone could generate more than $3 billion in the first 12 to 18 months, according to Bloomberg Intelligence ETF analyst James Seyffart.
“A good frame of reference is to look at the size of Solana in relation to bitcoin and Ethereum,” Seyffart said. “Solana’s market capitalization is 5% of bitcoin and 22% of Ethereum. If they keep up with the flows we’ve seen for ETH and BTC ETFs on a relative basis that would equate to like $3+ billion in flows over the first 12 to 18 months. Time will tell if they manage to do this.”
Bitwise’s Solana ETF (BSOL) debuted on the New York Stock Exchange and traded $10 million in volume in its first 30 minutes, according to Eric Balchuna of Bloomberg Intelligences. On Nasdaq, Canary Capital’s Hedera ETF (HBR) and Litecoin ETF (LTCC) posted $4 million and $400,000, respectively.
Balchunas expects BSOL to reach $52 million in volume by the end of the day, with HBR and LTCC reaching $8 million and $7 million.
The funds launched under the Securities Act of 1933, a regulatory framework commonly used for commodity-based ETFs. Unlike funds governed by the Investment Company Act of 1940, Act 33 products do not require a board of directors or daily portfolio disclosure, making them a preferred format for single-asset crypto ETFs.
CoinDesk Indices provides the price benchmarks for HBR and LTCC.
By comparison, the spot bitcoin ETF brought in $628 million in flows on its first day across multiple issuers. Spot Ether ETFs saw $106 million. Tuesday’s launch featured only one issuer per asset, but Grayscale’s Solana Trust, which the firm filed to convert into an ETF, will begin trading on Wednesday.
Looking at the potential demand for HBAR and LTC, Seyffart added: “The market capitalization of HBAR is about 8% of the size of Solana, while Litecoin is 7% of Solana. So it will probably be much smaller. Again, time will tell.”
