The Solana ETF Era Begins

Many thanks to 0xIchigo for reviewing earlier versions of this work.

Introduction

Solana exchange-traded funds (ETFs) are finally here. After months of speculation and mounting excitement, the U.S. Securities and Exchange Commission (SEC) has greenlit a wave of Solana ETF applications. Yesterday, Bitwise’s Solana Staking ETF (BSOL) made its debut on the NYSE Arca, leading all new launches with $56 million in first-day trading volume, making it the strongest ETF debut of the year.

The ETF approval process has been delayed following the recent U.S. government shutdown, triggered by Congress’s failure to pass a funding bill. The resulting pause in SEC operations, together with prior postponements, led to a backlog of more than 150 pending crypto exchange-traded product (ETP) filings across 35 digital assets.

Among them, Solana stands out as the clear frontrunner with 23 separate ETF filings, which Bloomberg’s Eric Balchunas has aptly described as a “land rush.”

The introduction of so many Solana ETFs in the U.S. market marks a milestone for the network’s integration into traditional finance. ETFs, much like digital asset treasury (DAT) companies, serve as vital bridges between the blockchain ecosystem and conventional capital markets. They expand access to SOL, attract new inflows, broaden the holder base, and enable a wider spectrum of investors to participate in the network’s growth and long-term upside.

ETF Fundamentals

Exchange-Traded Funds (ETFs) are investment vehicles, structured as funds, that hold a pool of underlying assets, such as stocks, bonds, commodities, or cryptocurrencies. Investors purchase shares of the ETF, which represent a proportional ownership of the fund’s holdings, rather than holding the assets directly themselves. ETFs are regulated under investment fund frameworks, providing low-cost, liquid access to markets.

An Exchange-Traded Product (ETP) is a broader term that encompasses ETFs, as well as exchange-traded notes (ETNs) and exchange-traded commodities (ETCs). ETFs are a subset of ETPs specifically structured as funds. In short, all ETFs are ETPs, but not all ETPs are ETFs.

ETFs have surged in popularity among investors, fueling a record-breaking boom in the U.S. market. There are now over 4,600 exchange-traded funds listed, surpassing the number of publicly traded U.S. companies. In just the first nine months of 2025, 794 new ETFs launched, averaging nearly three new funds per day, with asset managers on track to introduce more than 1,000 new products by year-end. Collectively, U.S.-listed ETFs now hold $12.7 trillion in total net assets.

Crypto ETFs

In the context of digital assets, crypto ETFs enable investors to gain exposure to cryptocurrencies without the operational complexities of custody, private keys, or trading on crypto exchanges. Investors can buy and sell ETF shares through traditional brokerage accounts, gaining regulated access to crypto markets in a familiar and compliant wrapper.

Bitcoin ETFs

The surge in crypto ETF popularity began in January 2024 with the launch of the first U.S.-listed Bitcoin ETFs. This debut followed years of regulatory resistance and legal battles that ultimately led to approval under former Securities and Exchange Commission (SEC) Chairman Gary Gensler, during an administration often seen as, at best, skeptical and, at worst, openly hostile toward the crypto industry.

Since January 2024, U.S.-listed Bitcoin ETFs have attracted $61.8 billion in cumulative inflows. The iShares Bitcoin Trust (IBIT) has emerged as the clear leader, holding 804,944 BTC. According to BlackRock CEO Larry Fink, IBIT is not only the largest Bitcoin ETF but also “the fastest-growing ETF in the history of ETFs.”

Ethereum ETFs

U.S.-listed Ethereum ETFs launched in July 2024 but initially saw limited demand compared to Bitcoin. Interest began to accelerate from May 2025 onward (see chart below), with cumulative inflows now reaching $14.48 billion. BlackRock once again leads the market through the iShares Ethereum Trust (ETHA), which has grown into the dominant product, holding more than 4.01 million ETH.

The success of both Bitcoin and Ethereum’s U.S.-listed ETFs has demonstrated the strong appetite among traditional investors for exposure to digital assets, with recent regulatory developments further accelerating the trend of more crypto ETFs.

In Kind Redemption

In July, the SEC approved in-kind creations and redemptions for crypto ETFs. This development lets crypto holders move their digital wealth into regulated funds without triggering taxable events. Assets are exchanged directly rather than sold for cash, allowing investors to fold crypto holdings into vehicles managed by major institutions easily.

In this way, Crypto ETFs can serve as an accessible, tax-efficient bridge between the worlds of crypto and traditional finance. Volatile digital assets can be treated as ordinary brokerage holdings, allowing assets to be borrowed against, pledged as collateral, or transferred through estate planning.

Generic Listing Standards

In September 2025, the SEC approved new generic listing standards for spot cryptocurrency and commodity ETFs, removing a long-standing regulatory barrier to their launch. Under the new rules, ETF issuers and exchanges can secure approval without a lengthy, case-by-case review, reducing the process from over 240 days to approximately 75.

To qualify, a proposed ETF must meet at least one of three key criteria: the underlying asset already trades on a regulated market, has Commodity Futures Trading Commission (CFTC) regulated futures for at least six months, or an existing ETF already holds at least 40% of its assets in that cryptocurrency. 

Among the first ETFs expected to launch under these streamlined generic listing rules are those tracking Solana.

Staking

Unlike U.S.-based Ethereum ETFs, which launched without staking, the upcoming wave of Solana ETFs will debut with staking enabled. The absence of staking in Ethereum ETFs left investors missing out on the typical 2.5–3% annual yield, placing these products at a disadvantage compared to holding spot ETH or investing in digital asset treasury companies.

This dynamic changed in May when the SEC issued new guidance explicitly clarifying that “Protocol Staking Activities in connection with Protocol Staking do not involve the offer and sale of securities within the meaning of Section 2(a)(1) of the Securities Act of 1933 or Section 3(a)(10) of the Securities Exchange Act of 1934.” This opens the door for Solana ETFs to integrate native staking from launch, an especially significant feature given SOL’s comparatively high staking yield of 6–7%.

Solana’s staking model is notably simple and ETF-friendly. Unlike other Proof of Stake networks that use long unbonding periods, slashing penalties, or complex queue systems, Solana allows stake accounts to deactivate at any time and withdraw at the next epoch boundary (i.e., at most two days). While no more than 25% of total active stake can be activated or deactivated within a single epoch, this limit has never come close to being approached, even during times of severe volatility. Slashing is not active on Solana, though limited programmatic mechanisms are planned for future rollout.

The ecosystem also supports a robust liquid staking token (LST) sector, which currently accounts for 56.8 million SOL, representing 13.1% of all staked tokens. Liquid staking providers such as Jito have already partnered with ETF issuers to structure LST-backed ETFs, further expanding investor access to yield-bearing SOL exposure.

Spot Vs. Futures ETFs

Digital asset ETFs typically fall into two categories: spot and futures.

Spot ETFs hold the underlying cryptocurrency directly. For example, a spot Solana ETF owns SOL tokens in custody with a qualified institution, and each share represents a proportional claim on those holdings. This structure offers investors the most direct and transparent exposure to Solana’s market price, closely mirroring spot performance, minus management fees.

Futures ETFs, on the other hand, gain exposure by tracking SOL futures contracts listed on regulated exchanges such as the Chicago Mercantile Exchange (CME), rather than holding the cryptocurrency itself. These contracts must be settled periodically or rolled into new contracts as they approach expiration. That rolling process can create “contango,” in which futures prices trade above spot prices, resulting in a roll premium that gradually erodes returns. The reverse condition, known as “backwardation,” occurs when futures trade below spot.

Because they directly mirror the asset’s price, spot ETFs avoid these roll costs and maintain a cleaner correlation with the underlying asset's performance. They are generally more efficient vehicles for long-term investors. At the same time, futures ETFs are better suited for tactical or short-term trading strategies or for markets where spot ETF approval has not yet been granted.

Several Solana futures ETFs have already entered the market, including two from Florida-based Volatility Shares: the Volatility Shares Solana ETF (SOLZ) and the 2x leveraged Volatility Shares Solana ETF (SOLT). SOLT is designed to deliver twice the daily return of Solana via managed futures contracts, appealing to sophisticated traders seeking leveraged, short-term exposure within a regulated framework.

However, products like SOLT are unsuitable for long-term holding, as compounding effects and daily reset mechanics can cause significant divergence from the intended 2x performance over extended periods.

Solana ETFs

Several leading traditional finance institutions are set to provide customers with exposure to SOL through ETFs, including Bitwise, Fidelity, Grayscale, VanEck, and Franklin Templeton. The most popular exchange for ETF listings is the Cboe BZX Exchange (formerly known as the BATS Exchange), which is a U.S. equities exchange operated by Cboe Global Markets. Other exchange venues include the New York Stock Exchange Arca, which specializes in ETFs, and the Nasdaq.

The table below, compiled by Helius Research, summarizes key details of leading U.S.-based Solana ETF filings available at the time of writing, listed in alphabetical order.

*An S-1 form is a registration statement filed with the SEC that provides detailed information about a proposed ETF, including its structure, investment strategy, risks, and management, as part of the process for gaining approval to list and trade on a public exchange.

**Fee waived for first three months of trading or first $1 billion in fund assets.

Fees

The Solana ETF landscape is shaping up to be fiercely competitive, with fees emerging as the primary battleground for attracting investor inflows. Sponsor fees, which cover the fund’s standard operational expenses, excluding extraordinary legal or regulatory costs, play a crucial role in determining investor appeal. As Bloomberg’s Eric Balchunas notes, “Low fees have a near-perfect record of attracting investors.”

The typical fee range for Bitcoin and Ethereum ETFs is 0.15% to 0.25%, and early signs suggest Solana ETFs will follow a similar fee structure. In the final days before approvals, it is common for asset managers to repeatedly file amended prospectuses, slashing fees and unveiling temporary fee waivers to outmaneuver competitors and vie for early market dominance. Bitwise has already set the tone, aggressively cutting its sponsor fee to 0.20% and waiving all fees for the first three months of trading or until the fund reaches $1 billion in assets, whichever comes first.

BlackRock

A notable omission from the list of Solana ETF filers is the world’s largest asset manager, BlackRock. Despite persistent speculation, BlackRock stated in August that it has no immediate plans to launch a spot Solana ETF. Given the firm’s commanding 50%+ market share in Bitcoin and Ethereum ETFs, its absence from the Solana race creates a markedly different competitive dynamic, allowing other issuers to capture early leadership and define the market’s direction. Favorites to capture the top spot include Bitwise, Fidelity, and Grayscale. 

European Market Solana ETFs

Solana ETFs in international markets provide an early glimpse into the potential demand for U.S.-based listings. In Europe, Solana staking ETPs have already attracted billions of dollars in assets under management (AUM), demonstrating strong investor appetite for exposure to the network’s growth. For context, the U.S. ETF market is roughly five times the size of the EU market.

21Shares Solana Staking ETP (ASOL)

Launched in June 2021, just over a year after Solana’s mainnet debut, ASOL trades across major European exchanges, including Switzerland, Germany, the Netherlands, and France. It currently manages $1.447 billion in assets as of September 2025.

CoinShares Physical Solana Staked ETP (SLNC)

Introduced in March 2022, SLNC offers investors direct exposure to SOL with staking yield included. It is listed on SIX Swiss Exchange, Xetra, and gettex in Germany, with $952.54 million in AUM.

Bitwise Solana Staking ETP (BSOL)

A more recent entrant, BSOL, launched in February 2024 and tracks SOL while incorporating staking rewards. Listed on Xetra and the SIX Swiss Exchange, it has grown to $101.4 million in AUM, with $60 million of inflows recorded in September alone.

Other International Markets

Canada has emerged as an early leader in offering regulated Solana investment products, with multiple spot ETFs now available to investors. These include the Purpose Solana ETF (SOLL.U), 3iQ Solana Staking ETF (SOLQ.U), CI Galaxy Solana ETF (SOLX.U), and Evolve Solana ETF (SOLA.U), each providing direct exposure to SOL rather than derivatives. Several of these products incorporate staking.

Meanwhile, in Asia, the Hong Kong Securities and Futures Commission (SFC) has officially approved a spot Solana ETF issued by ChinaAMC, which is set to list on the OSL Exchange. This marks one of the first regulatory endorsements of a Solana ETF in the region, highlighting Hong Kong’s ambition to establish itself as a global hub for digital asset innovation.

Conclusion

The competition for investor capital between digital asset treasury (DAT) companies and ETFs is particularly compelling. Both provide non-crypto-native investors with convenient access to Solana’s upside through traditional brokerage accounts. DATs pursue active, execution-driven strategies that aim to outperform simple staking, while ETFs offer a lower-risk, lower-cost alternative that more closely tracks the performance of SOL itself.

With Fidelity’s popular brokerage platform also recently adding support for Solana, millions of retail investors can access the cryptocurrency for the first time. In short, investors have never had more ways to gain exposure to SOL.

Further Resources

• ExchangeTradedFunds.com - ETF filings