- Solana’s ETF includes staking with 5% yield, targeting yield-focused institutions.
- Analysts expect $3B–$6B in capital to flow into Solana in the ETF’s first year.
- SEC-approved Solana ETF signals growing altcoin acceptance in finance.
- Bitcoin ETFs drew $36.2B in a year; Solana could see similar adoption trends.
The launch of the first Solana staking exchange-traded fund (ETF) could bring up to $6 billion into Solana within a year. With approval from U.S. regulators, this ETF opens the door for institutional investors to earn passive income while gaining exposure to the altcoin market. Analysts say this move marks a turning point for Solana, placing it alongside Bitcoin and Ether in mainstream finance.
Solana Staking ETF Marks a New Phase for Altcoins
The U.S. Securities and Exchange Commission (SEC) has approved the first Solana staking ETF. This product offers investors exposure to Solana with an added benefit—an annual yield of about 5% through staking.
According to Ryan Lee, chief analyst at Bitget, the ETF could attract between $3 billion and $6 billion in its first year. “Solana could now attract between $3–$6 billion in its first year,” Lee stated. JPMorgan also estimated similar figures based on data from previous ETF launches.
Staking allows investors to lock their tokens in a blockchain network, helping to validate transactions. In return, they receive passive income. This feature makes the new ETF more attractive to institutions looking for yield in a regulated product.
ETF Launch Signals Broader Institutional Entry into Altcoins
Bloomberg analyst Eric Balchunas confirmed that multiple altcoin ETFs are set to go live. These include Bitwise’s Solana ETF, as well as ETFs for Litecoin and Hedera by Canary. These funds represent a broader shift toward regulated altcoin investments.
Analysts believe this move could bring more institutional money into areas like decentralized finance (DeFi) and tokenized real-world assets. These sectors have seen growing interest but lacked compliant investment vehicles until now.
Source: X
Historical data supports these forecasts. When spot Bitcoin ETFs launched in early 2024, they helped Bitcoin regain the $50,000 level in less than a month. Similar results were seen with Ether, whose ETFs gathered over $8.6 billion in their first year, according to SoSoValue.
Yield-Generating Products Are Drawing Institutional Attention
The staking feature is a key reason why institutions may adopt the Solana ETF. A 5% annual return is attractive in the current market, especially when paired with crypto exposure. Institutions often seek regulated products that also offer yield.
Ryan Lee noted that this structure helps meet demand for yield-generating assets, which could support continued capital flow into the sector. “This move signals broader acceptance of altcoins within compliant, yield-generating structures,” he added.
Source: X
JPMorgan data shows that XRP, another altcoin, could draw between $4 billion and $8 billion if a similar ETF is launched. These numbers show that institutional interest in altcoins is no longer limited to Bitcoin or Ether.
Solana Moves Closer to the Status of Bitcoin and Ether
With this ETF approval, Solana is being grouped with the leading cryptocurrencies in the eyes of investors. Analysts say that joining the ranks of Bitcoin and Ether could lead to deeper liquidity and more mainstream adoption.
This shift reflects changing attitudes in traditional finance toward blockchain networks beyond Bitcoin. As Solana gains recognition through regulated products, its role in the wider crypto ecosystem may continue to grow.
According to blockchain data and investment forecasts, ETFs have become a primary channel for capital entering the crypto space. With Solana now offering a staking-based ETF, it opens new investment paths for institutional funds.
Get 3 Free Stock Ebooks
Discover top-performing stocks in AI, Crypto, and Technology with expert analysis.
- Top 10 AI Stocks - Leading AI companies
- Top 10 Crypto Stocks - Blockchain leaders
- Top 10 Tech Stocks - Tech giants
