Spot exchange-traded funds for Solana, Hedera, and Litecoin debuted in the U.S. this week, significantly broadening regulated investment access to a wider array of cryptocurrencies beyond Bitcoin and Ethereum.
The launch provides institutional and retail investors with direct exposure to these alternative digital assets. It follows the successful introduction of Bitcoin and Ethereum spot ETFs earlier this year.
Solana’s fund, issued by Bitwise under the ticker BSOL, led the market with initial trading volumes. It recorded $10 million in volume within its first 30 minutes on the New York Stock Exchange.
Bloomberg Intelligence analyst Eric Balchunas estimated Solana’s daily volume could reach $52 million. Another Bloomberg analyst, James Seyffart, projected the Solana ETF could attract more than $3 billion in capital over the next 12 to 18 months.
This projection assumes it sustains the adoption pace observed in the earlier Bitcoin and Ethereum ETFs. Seyffart highlighted that “Solana’s market capitalization is equivalent to 5% of BTC’s and 22% of ETH’s,” providing a basis for these flow expectations.
On the Nasdaq exchange, Canary Capital introduced ETFs for Hedera (HBR) and Litecoin (LTCC). Hedera’s fund began with an initial volume of $4 million. Litecoin’s ETF saw a more modest start with $400,000.
Analysts anticipate daily closing volumes of approximately $8 million for Hedera and $7 million for Litecoin.
All three new funds are structured under the 1933 Securities Act. This regulatory framework, common for commodity-based products, allows for individual digital asset issuers to forgo a board of directors and daily portfolio disclosures.
Comparatively, Bitcoin spot ETFs attracted $628 million on their first day across multiple issuers. Ethereum spot ETFs saw $106 million in initial inflows.
Tuesday’s launches involved a single issuer per asset. Grayscale is expected to convert its Solana Trust into an ETF soon, potentially increasing market activity.
Seyffart also noted market cap differences. He stated, “HBAR’s market capitalization represents about 8% of Solana’s, while Litecoin’s is equivalent to 7%,” indicating potentially lower inflows for these two.
This expansion underscores the growing institutionalization of the crypto sector. It offers new diversification avenues for traditional investment portfolios.
Analysts generally agree that the initial interest confirms a rising global appetite for alternative digital assets. This wave of new ETFs signals the continuing integration of blockchain investment into the global financial ecosystem.