Solana News Today: Investors Flock to Solana Staking ETF as Altcoin Rivals Stumble

The Bitwise Solana Staking ETF (BSOL) has captured significant investor attention, surging to a record $69.5 million in inflows on its debut day, October 28, 2025, according to Farside Investors. This marks the highest first-day trading volume among over 850 ETFs launched this year, as noted by ETF Institute's Nate Geraci. The fund, which tracks Solana's native token (SOL) and includes staking rewards, now holds $288.92 million in total assets, reflecting a 0.01% allocation relative to Solana's $107.4 billion market cap, according to a Crypto.News report.

The ETF's success contrasts sharply with other altcoin ETFs launched simultaneously. While Canary's Litecoin and Hedera ETFs recorded no inflows, BSOL's inflows exceeded $70 million within two days, with $55.4 million in trading volume on its second day—described as "a huge number" by Bloomberg's Eric Balchunas, as Cointelegraph reported. This performance underscores growing institutional and retail demand for Solana-based products, particularly as staking yields (projected at 7.3% annually) differentiate it from traditional Bitcoin and Ethereum ETFs, as Crowdfund Insider reported.

The ETF's rapid approval was facilitated by an SEC rule enacted before the agency's partial shutdown, which streamlined filings for products meeting S-1 form requirements. However, U.S. investors had to wait until October 27 for NYSE Arca's certification, as Hong Kong's ChinaAMC launched Asia's first Solana ETF days earlier, Ambcrypto reported. Bitwise's BSOL, now listed on NYSE, positions itself alongside Grayscale's newly launched Solana Trust ETF (GSOL), which debuted with $4 million in volume—a fraction of Bitwise's performance.

Market dynamics remain volatile. Despite a 15% rally in Solana's price to $205 following ETF news, the token retreated to $196 amid broader macroeconomic concerns, including the Federal Reserve's rate cuts and geopolitical tensions. Meanwhile, Bitcoin ETFs faced $470 million in outflows as BTC dipped below $110,000, as CryptoNews reported. Analysts, however, remain optimistic: JPMorgan predicts $3–6 billion in inflows for staking-enabled Solana ETFs in their first year.

Competition is intensifying. VanEck, Grayscale, and 21Shares are awaiting SEC approvals for their own Solana ETFs, while 21Shares recently filed for a Hyperliquid (HYPE) ETF, reflecting Wall Street's expanding appetite for altcoins. Bitwise's CIO, however, has noted that Solana ETFs are "missing part of the puzzle," suggesting further innovation is needed to capture the asset's full potential.