VanEck has rolled out the United States’ third exchange-traded fund offering Solana staking, adding fresh momentum to a growing wave of altcoin-linked products hitting public markets.
Key Takeaways:
- VanEck has launched the third US Solana staking ETF, joining Bitwise and Grayscale as inflows into Solana-linked funds accelerate.
- VSOL offers staking rewards and a temporary zero-fee structure, intensifying competition.
- Fidelity’s Solana ETF set to debut next and multiple Dogecoin ETF filings nearing potential launch windows.
The VanEck Solana ETF (VSOL) went live on Monday, joining similar staking-enabled Solana ETFs from Bitwise and Grayscale, which have collectively attracted more than $380 million since their late-October debuts.
VSOL mirrors its competitors by offering staking rewards on Solana, allowing investors to earn yield while holding the asset inside the ETF structure.
In a push to gain market share quickly, VanEck has waived its 0.3% management fee until February 17 or until the fund amasses $1 billion in assets.
The launch comes amid a rush by issuers to introduce new crypto products after the SEC’s September rule change streamlined the approval process and removed the need for case-by-case reviews.
Bloomberg ETF analyst Eric Balchunas said the lineup is expanding rapidly, with Fidelity’s Solana ETF (FSOL) set to debut on Tuesday.
FSOL enters a field where most funds charge around 0.25%, and Balchunas noted that Fidelity is the largest asset manager in the category, with BlackRock notably absent from the Solana race so far.
More altcoin ETFs are lining up behind the Solana wave. A Dogecoin ETF from Grayscale could launch as early as November 24, following an amended filing that triggered a 20-day window in which the product can go live unless the SEC intervenes.
The fund is a conversion of the existing Grayscale Dogecoin Trust and would trade on the New York Stock Exchange, pending final approval from the exchange.
If launched, it would become the first US ETF able to directly hold Dogecoin. The only existing DOGE-themed ETF, issued by REX Shares and Osprey Funds in September, is limited to holding the asset through an offshore subsidiary due to its structure under the Investment Company Act of 1940.
Bitwise could soon join the Dogecoin ETF race, with a filing update earlier this month also triggering a potential late-November launch.
The growing list of altcoin ETFs reflects increasing competition among issuers hoping to capture inflows beyond Bitcoin and Ether as the market broadens.
Digital Asset Products See $2B Outflows
As reported, digital asset investment products suffered their heaviest weekly outflows since February, with $2 billion exiting the market last week.
The sell-off marked the third consecutive week of withdrawals, bringing total outflows over the period to $3.2 billion.
The slump follows sharp price declines across major cryptocurrencies, which have pushed total assets under management in digital asset ETPs down 27% from their early-October peak of $264 billion to $191 billion.
Analysts cited ongoing monetary policy uncertainty and aggressive selling from crypto-native whale wallets as the main drivers behind the downturn.
The US accounted for the overwhelming share of outflows, with $1.97 billion leaving U.S.-based products.
Switzerland and Hong Kong followed at a distance, recording $39.9 million and $12.3 million in outflows.
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