Solana News Today: Solana ETFs Attract $199M as Staking Rewards Fuel $5B Growth Projections

The U.S. Solana (SOL) spot ETF market has seen explosive demand in its early days, with the asset class recording a net inflow of $199 million in its first week of trading, according to Farside Investors data. Bitwise's BSOL led the charge, capturing $197 million in inflows over four days, while Grayscale's GSOL added $2.2 million, bringing the total for U.S. SOL ETFs to $199 million. This surge underscores growing institutional and retail confidence in Solana, a high-throughput blockchain platform that has positioned itself as a key player in the decentralized finance (DeFi) and smart contract ecosystems.

The ETF inflows have already begun influencing on-chain activity, with Solana's stablecoin supply surging by $152 million in 24 hours—the highest among Layer-1 blockchains, surpassing Ethereum's $140 million, according to Yahoo Finance. This liquidity boost has coincided with a price rebound for SOL, which rose to $190 on October 31 after dipping to $179 earlier in the week. Analysts attribute the upward movement to the direct liquidity effects of institutional ETF purchases.

Bitwise's BSOL, the first U.S. Solana ETF to launch on October 28, shattered records with $69.5 million in inflows on its debut day, according to TradingView. The fund's performance was described as "historic" by the ETF Institute's Nate Geraci, who noted it recorded the highest first-day trading volume among over 800 ETFs launched this year. Meanwhile, Grayscale's GSOL, which began trading on October 29, has yet to see significant inflows but carries a 0.35% expense ratio and a staking-enabled structure that could attract long-term investors, according to Yahoo Finance.

Grayscale's Head of Research, Zach Pandl, has projected that Solana ETFs could capture 5% of the token's circulating supply within one to two years, translating to over $5 billion in assets under management, according to Yahoo Finance. This estimate is based on the precedent set by Bitcoin and Ethereum ETFs, which saw rapid adoption once regulated exchange-traded products (ETPs) became available. Pandl emphasized that Solana's proof-of-stake model allows investors to earn staking rewards—up to 5.7% annually in GSOL's case—making the asset a compelling addition to diversified portfolios, according to an XT blog.

The competitive ETF landscape includes three major players: Bitwise's BSOL, Grayscale's GSOL, and Rex-Osprey's SSK. While BSOL dominates with 100% staked exposure and a waived management fee for the first three months, SSK has grown its assets under management to $400 million since August, according to Crypto.News. JPMorgan analysts predict that upcoming Solana ETFs from firms like VanEck and Fidelity could attract over $6 billion in inflows during their first year.

Market observers also highlight Solana's broader fundamentals, including a 55% year-to-date increase in on-chain transaction volume and a 14% rise in stablecoin supply to $15.6 billion. These metrics reinforce the network's appeal to developers and users, positioning it as a viable alternative to Ethereum in the DeFi space.