A significant wave of new cryptocurrency spot exchange-traded funds (ETFs) launched this week, expanding investment opportunities for individual investors eager to explore lesser-known digital currencies. Until now, retail investors primarily had access to Bitcoin and Ethereum through ETF products, but the latest offerings allow broader exposure, including Solana, ranked as the sixth most popular cryptocurrency.
The Bitwise Solana Staking ETF (BSOL) reportedly experienced an unprecedented launch, being noted by Bloomberg Intelligence analyst Eric Balchunas as achieving the best ETF debut across any asset class in 2025. In contrast, other newly introduced ETFs that focus on Litecoin and Hedera generated comparatively lower initial demand.
Cryptocurrency exchanges like Coinbase have offered these alternative cryptocurrencies for some time, but the new ETF structures simplify the investment process for individuals, enabling them to acquire shares through any traditional brokerage. Balchunas emphasized the accessibility of these products, likening the ease of investment to that of ordering a meal at McDonald’s: “It’s low-cost, easy, and safe.”
This new wave of cryptocurrency ETFs follows a pivotal moment nearly two years ago when the Securities and Exchange Commission (SEC) began allowing crypto funds in early 2024. This breakthrough came after extensive legal battles, with BlackRock and other firms finally receiving approval to offer Bitcoin ETFs. The integration of Ethereum ETFs soon followed, laying the groundwork for an expanded range of digital asset options.
On Thursday, BSOL recorded an impressive $46 million in trading volume just three days post-launch. In stark contrast, the performances of the Canary Hedera and Litecoin ETFs were significantly lower, only reaching approximately $2.3 million and $500,000, respectively.
Bitwise CEO Hunter Horsley commented on BSOL’s exceptional performance, stating that it resonated strongly with investor interest. The Solana ETF was part of a competitive landscape, with other companies like Grayscale and Canary also entering the ETF market with their offerings. The rush to debut these financial products underscores the strategy among issuers: gaining an early advantage to cultivate investor loyalty.
Reflecting on the competitive dynamics, Balchunas remarked, “It’s like the Ricky Bobby quote, ‘If you’re not first, you’re last.’” This urgency to market aligns with an evolution that began almost a decade ago with the initial attempts to launch a spot Bitcoin ETF, starting with the Winklevoss twins in 2013.
The journey toward green-lighting spot Bitcoin ETFs has been fraught with challenges. The SEC, under varying administrations, consistently rejected applications over concerns related to market maturity and the potential for manipulation. Although a Bitcoin futures ETF was approved in 2021, the desire for a spot ETF remained largely unfulfilled. A significant turning point came when Grayscale, a major player in cryptocurrency asset management, won a lawsuit against the SEC in August 2023, leading to the approval of select spot ETFs in 2024. BlackRock’s iShares Bitcoin Trust (IBIT) quickly amassed $70 billion in total assets, setting records for ETF growth.
The recent launches also appear to be leveraging new guidelines from the SEC issued during the current federal government shutdown. While the specific details surrounding these approvals remain somewhat ambiguous, Balchunas noted that issuers are adeptly navigating regulatory nuances. He suggested that XRP, the fifth-largest cryptocurrency, may be positioned for its own ETF launch in the near future, predicting a debut shortly after the government resumes operations.
Meanwhile, industry discussions continue to shape the crypto landscape, with senior experts analyzing the forces at play on platforms like the new Fortune Crypto Playbook vodcast.
