The global cryptocurrency market is paying attention to the news that a series of ETFs (Exchange-Traded Funds) may be about to launch this week, including Solana (SOL), Litecoin (LTC), and Hedera (HBAR). According to analyst Eric Balchunas, these funds may start listing from today, opening a new chapter for a more legitimate and transparent wave of crypto investments.
Accordingly, Bitwise will be the issuer of the ETF for Solana, while Canary will be behind the ETFs of Litecoin and HBAR. Notably, Grayscale – the giant in the digital asset management industry – is also expected to convert the Solana Trust into an ETF soon after.
A crypto ETF is a financial instrument that allows investors to access the cryptocurrency market without directly holding coins. Instead of managing their own wallets, private keys, or exchanges, investors can buy shares of an ETF and benefit from the price fluctuations of the underlying assets such as Bitcoin (BTC) or Solana (SOL).
Since the US Securities and Exchange Commission (SEC) approved the first spot Bitcoin ETF in January 2024, a series of large financial institutions such as BlackRock, Fidelity, ARK 21Shares, Grayscale, VanEck… have quickly joined the game. Although the market slowed down after the US government shutdown in October 2024, the SEC has maintained limited operations and continued to process altcoin-related fund applications.
The highlight of the upcoming Solana ETFs is the integration of Staking – a form of Token Lockup to support blockchain network security and receive passive rewards. The first Solana Staking ETF – REX-Osprey Solana Staking ETF – was launched in July 2024 on the Cboe BZX exchange, marking an important milestone in the US financial market's recognition of the legal Staking model.
Grayscale also added Staking functionality to the Solana Trust after the SEC confirmed that some forms of Staking do not XEM securities offerings. This paved the way for other funds like the Bitwise Solana ETF to incorporate Staking elements from an early stage.
The ETF wave is just the beginning, Chia to Thomas Uhm, CEO of Jito, a Solana Liquid Staking protocol. He revealed that top Wall Street investment banks have started working with Jito to develop Derivative products based on Solana Staking ETFs, including accumulation strategies and options.
“We believe these ETFs will become a bridge between high-performance blockchain ecosystems like Solana and massive Capital flows from traditional financial institutions,” he added.
