Solana ETFs to attract $6B in first year as SOL joins the ‘big league’

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Solana is stepping up to the “big league” acknowledgment to the support of the archetypal Solana staking ETF, which whitethorn bring wider altcoin adoption among yield-seeking institutions, an expert said.

Solana ETFs to pull $6B successful archetypal twelvemonth arsenic SOL joins the ‘big league’

Investors are intimately watching the motorboat of the archetypal Solana staking exchange-traded money (ETF), a determination expected to inject billions of dollars into Solana and the broader altcoin market.

At slightest three altcoin ETFs are expected to motorboat aboriginal connected Tuesday: Bitwise’s Solana (SOL) ETF, Canary’s Litecoin (LTC) and Hedera (HBAR) ETFs, according to Bloomberg expert Eric Balchunas.

The US Securities and Exchange Commission’s (SEC) support of the archetypal Solana staking ETF is simply a “transformative” milestone that whitethorn pull an further $3 cardinal to $6 cardinal worthy of caller superior into the altcoin wrong the archetypal year, according to Bitget exchange’s main analyst, Ryan Lee.

“Solana could present pull betwixt $3–$6 cardinal successful its archetypal year.”

The caller ETF’s staking diagnostic introduces an further 5% passive income for its holders, a dynamic that whitethorn bring much organization superior into the wider altcoin assemblage beyond conscionable ETFs, added the analyst.

Staking means locking your tokens into a proof-of-stake (PoS) blockchain web for a predetermined play to unafraid the web and gain passive income successful exchange.

New crypto-based ETFs could propel the underlying altcoins to caller all-time highs. For Bitcoin (BTC), the ETFs accounted for astir 75% of caller investment erstwhile Bitcoin recaptured the $50,000 people connected Feb. 15, little than a period aft spot BTC ETFs debuted connected Jan. 11.

Solana steps into “big league” with ETF launch, marking nett affirmative for altcoins

Solana is stepping into the “big league” adjacent to the 2 starring cryptocurrencies, a improvement that could bolster the wider altcoin market’s organization adoption, according to Lee.

“Beyond Solana itself, this determination signals broader acceptance of altcoins wrong compliant, yield-generating structures, driving caller superior into DeFi, real-world plus tokenization, and multi-asset ETF products,” Lee said.

The historical motorboat of the US spot Bitcoin ETFs attracted $36.2 cardinal successful investments during the archetypal twelvemonth for Bitcoin, portion the US spot Ether (ETH) ETFs amassed $8.64 cardinal during their archetypal twelvemonth of trading, according to blockchain data aggregator SoSoValue.

Based connected the adoption rates of Bitcoin and Ether ETFs, JPMorgan, a multinational concern bank, besides predicted that a Solana ETF would pull betwixt $3 cardinal and $6 billion, portion an XRP ETF would garner $4 cardinal to $8 cardinal successful caller investments.