It took patience, but this time, it’s official. After long months of waiting, four new crypto ETFs are about to enter the American markets. Solana, Litecoin, and Hedera will be listed starting Tuesday on the Nasdaq. This new chapter clearly shows that traditional finance continues to open up to the crypto universe. After the success of Bitcoin and Ethereum ETFs, it’s now time for alternative cryptos.
In Brief
- •Bitwise’s BSOL offers direct exposure to Solana, with 100% of assets staked.
- •Grayscale converts its former Solana fund into an ETF, a first for this institutional structure.
- •Canary Capital launches two new ETFs on the Nasdaq focused on Litecoin and Hedera this week.
- •The launch takes place despite the partial paralysis of the SEC due to the current federal shutdown.
The Solana Ecosystem Propelled to the Top of Crypto ETFs
The star of this wave? Solana. Bitwise launches the BSOL ETF, the first American product offering direct exposure to SOL. All assets will be 100% staked, with an expected yield around 7% per year. The infrastructure is provided by Helius Technologies, ensuring security and performance.
Confirmed. The exchange just released listing notices for the Bitwise Solana, Canary Litecoin and Canary HBAR ETFs, which will launch TOMORROW, and for the Grayscale Solana conversion the following day. Unless a last-minute SEC intervention, this definitely seems to be underway
— Eric Balchunas (@EricBalchunas) May 27, 2024
Grayscale, for its part, will convert its existing Solana fund into an ETF starting Wednesday. The information was confirmed by Eric Balchunas on X: “Confirmed. The exchange just released listing notices for the Bitwise Solana, Canary Litecoin and Canary HBAR ETFs, which will launch TOMORROW, and for the Grayscale Solana conversion the following day. Unless a last-minute SEC intervention, this definitely seems to be underway“.
Solana does not only attract traders. Its ecosystem is rapidly expanding, strengthened by developers and increasing institutional adoption. According to Kristin Smith from the Solana Policy Institute, BSOL is a bridge between decentralized finance and Wall Street.
For a crypto valued at over 111 billion dollars, this is a strategic rise.
Litecoin and Hedera Take Their Ticket to Wall Street
Solana shines, but Litecoin (LTC) and Hedera (HBAR) are not far behind. Canary Capital lists two new ETFs on the Nasdaq: the Canary Litecoin ETF and the Canary HBAR ETF. These cryptos don’t make big headlines, but they rely on solid fundamentals. Litecoin is known for its reliable technology, while Hedera appeals with its corporate governance (Google, IBM, etc.).
Their stock market debut comes as the SEC runs at a slow pace, a direct consequence of the federal shutdown. Issuers bypass this blockage via new generic listing rules that took effect in September. An opportune timing that allows other cryptos to dream: Cardano, Avalanche, Dogecoin await their turn.
Bitwise’s strategy is clear: facilitate access to staking without dealing with technical maneuvers. Institutional investors can now enjoy yields without directly holding the cryptos. And to top it all off, fees are waived for three months, or up to 1 billion dollars of assets.
4 Key Facts to Remember About This Crypto ETF Arrival
- •Bitwise’s BSOL is the first 100% spot Solana ETF in the United States;
- •Grayscale converts its Solana fund into an ETF starting Wednesday;
- •Crypto ETFs are listed starting Tuesday despite the partial SEC shutdown;
- •Hedera and Litecoin offer regulated exposure to institutional cryptos.
These launches come in a favorable climate for crypto ETFs. The products are booming: REX Shares’ XRP fund for instance just surpassed 100 million dollars in assets. Wall Street appears ready to adopt even more crypto assets in the coming months.