The US’ first Solana staking exchange-traded fund (ETF) will launch this Wednesday. Investors buying this new ETF will not only be exposed to Solana’s growth story but to the greater yield potential that staking offers. Rex Shares and Osprey Funds have joined to create a new kind of product. Per Presto Research, this launch will serve as a “litmus test” for institutional appetite for altcoin ETFs and staking. The market will be looking hard at the debut Solana ETF and how it gets received. That is especially critical considering the varied responses to Bitcoin and Ethereum ETFs.

Launch Details and Expectations

Volatility Shares’ Rex-Osprey Solana staking ETF will begin trading Wednesday, after receiving SEC approval on June 27. This ETF provides you with pure-play, direct exposure to Solana. Staking provides a source of yield that can be appealing to institutional investors who seek additional sources of return.

Peter Chung and Min Jung suggested the Solana ETF's performance could provide insights into the tepid reception of Ethereum ETFs.

A strong market response to the Solana ETF would challenge this, suggesting that Ethereum ETFs’ struggle stems from chain-specific issues rather than a flawed investment thesis. - Peter Chung and Min Jung

Altcoin ETF Prospects

Industry experts are still watching to see what this means for the chances of other altcoin ETFs. Litecoin, Solana, and XRP ETFs are predicted to have the highest odds of winning approval this year. If the Solana ETF performs well, it might open the floodgates for more altcoin investment products to be approved.

Now, the Solana staking ETF helps unlock a new chapter in cryptocurrency investments. Bloomberg ETF analysts James Seyffart and Eric Balchunas told us it might just open the floodgates for a new ETF tsunami.

Benchmarking Against Bitcoin and Ethereum ETFs

The Solana ETF's launch occurs after Bitcoin ETFs amassed $107 billion in assets under management in their first year, demonstrating significant investor appetite for crypto exposure. In comparison, during their first year Ethereum ETFs were much more subdued with only $4 billion in inflows. Peter Chung and Min Jung estimate that a $150 million inflow for the Solana staking ETF in its first month would be a pretty good start. This would provide a highwater mark for future altcoin ETFs to aspire to.