On Wednesday morning the first Solana exchange-traded fund (ETF) started trading. It happened on the Cboe BZX, a stock exchange based in Chicago. If successful, the launch represents a game changer in the state of crypto investments. Beyond that, though, it’s a signal that even mainstream investors are becoming more comfortable with digital assets.
Even more recently, the launch of a Solana ETF followed successful introductions of spot Bitcoin ETFs in January 2024. This notably includes a pre-filing ETF from BlackRock. Until recent months, the Securities and Exchange Commission (SEC) held firm against approving spot Bitcoin ETFs in the U.S. In Europe, analogous products began to take hold. When Grayscale Investments took the SEC to court, most expected it to have little chance of success until an unprecedented ruling in October 2023. Last moot, a judge ruled that the SEC’s rejection of Grayscale’s application for a spot Bitcoin ETF was “arbitrary and capricious.” This decision paves the way for such approvals going forward.
What once seemed like a niche product – crypto focused ETFs — seems to have moved into more mainstream territory. Funds related to Bitcoin, Ethereum, and Solana are currently being released almost daily. This progression demonstrates how the market is maturing with investors demonstrating strong demand for diversified cryptocurrency exposure. Regulatory shockwaves deploying Ethereum In July 2024, BlackRock, along with other issuers, launched ETFs for Ethereum, the second largest crypto by market cap.
Analysts predict that the SEC will approve numerous applications to launch cryptocurrency-tied funds under a more accommodating regulatory environment. James Seyffart, an ETF research analyst at Bloomberg Intelligence, is expecting even more growth in the ETF space.
"We expect a wave of new ETFs in this second half of 2025" - James Seyffart
