The first Solana exchange-traded fund (ETF) launched on Wednesday and started trading on Wednesday morning. It debuted on the Cboe BZX, one of America’s stock exchanges based in Chicago. This launch represents a significant step forward in terms of the potentially increased acceptance of cryptocurrency focused investment vehicles after initial regulatory challenges.
Until now, the Securities and Exchange Commission (SEC) had rejected applications to launch spot Bitcoin ETFs in the U.S. This decision proved to be a significant hurdle for other crypto-based investment products. Significant precedents with similar products to Bitcoin ETFs were already on the market in Europe, a clear indication that a market for these funds existed.
Grayscale even fought the SEC on behalf of spot Bitcoin ETFs to no avail. Last month, a judge issued a major ruling. He ruled that the SEC’s denials of Grayscale’s application for a spot Bitcoin ETF were “arbitrary and capricious.” This ruling opened the door for the future approval of Bitcoin ETFs.
After years of lobbying, in January 2024 several spot Bitcoin ETFs were finally approved, including one from BlackRock. These crypto ETFs, once seen as esoteric even by much of the retail investor base, have quickly started to resonate with a wider audience. The introduction of new funds linked to Bitcoin, Ethereum, and now Solana are indications that this market is maturing and investors continue to show significant interest.
July 2024 Ethereum, the second-largest cryptocurrency by market capitalization, received its own wave of ETFs. BlackRock and other issuers were out of the gate early to release these thrilling new investment vehicles.
Analysts predict a rapid growth of crypto ETFs, fueled by a friendlier regulatory landscape.
"We expect a wave of new ETFs in this second half of 2025" - James Seyffart, research analyst at Bloomberg Intelligence.
