Investors are closely watching the launch of the primary Solana stake exchange-traded fund (ETF), a move that is anticipated to inject billions of dollars into Solana and the broader altcoin market.
According to Bloomberg analyst Eric Balchunas, at the least three altcoin ETFs are expected to hit the market later Tuesday: Bitwise's Solana (SOL) ETF and Canary's Litecoin (LTC) and Hedera (HBAR) ETFs.
According to Bitget exchange chief analyst Ryan Lee, the U.S. Securities and Exchange Commission's (SEC) approval of the primary Solana stake ETF is a “transformative” milestone that would attract $3 billion to $6 billion value of additional capital to the altcoin inside the first 12 months.
“Solana could now attract between $3 billion and $6 billion in its first 12 months.”
The latest ETF's staking feature leads to an extra 5% passive income for its holders, a dynamic that would potentially bring more institutional capital into the broader altcoin sector beyond pure ETFs, the analyst added.
Staking is the act of locking your tokens on a Proof-of-Stake (PoS) blockchain network for a predetermined time period to secure the network and earn passive income in return.
Source: Eric Balchunas
New crypto-based ETFs could push underlying altcoins to all-time highs. For Bitcoin (BTC), ETFs accounted for about 75% of latest investments as Bitcoin reclaimed $50,000 on February 15, lower than a month after spot BTC ETFs debuted on January 11.
Solana moves into the “big league” with ETF introduction and marks a net gain for altcoins
Solana is moving into the “big league” alongside the 2 leading cryptocurrencies, a development that would bolster institutional adoption of the broader altcoin market, in keeping with Lee.
“Beyond Solana itself, this move signals broader adoption of altcoins inside compliant, yield-generating structures and drives latest capital into DeFi, real-world asset tokenization and multi-asset ETF products,” Lee said.
The historic launch of U.S. spot Bitcoin ETFs attracted $36.2 billion in investments in Bitcoin's first 12 months, while U.S. spot Ether (ETH) ETFs amassed $8.64 billion in its first 12 months of trading, in keeping with blockchain data aggregator SoSoValue.
Based on the adoption rates of Bitcoin and Ether ETFs, JPMorgan, a multinational investment bank, also predicted that a Solana ETF would attract $3 billion to $6 billion, while an XRP ETF would usher in $4 billion to $8 billion in latest investments.
