TLDR
- VanEck launched its Solana ETF, becoming the third such fund in the US to offer staking rewards.
- The VanEck Solana ETF joins similar funds from Bitwise and Grayscale, which have collectively attracted over $380 million in inflows.
- VanEck waived its 0.3% management fee until February 17 or until the fund reaches $1 billion in assets to remain competitive.
- Fidelity’s Solana ETF is set to launch soon, adding to the growing number of Solana-focused funds in the market.
- Solana’s price recently dropped by over 20%, but the token has seen a slight rebound in the last 24 hours.
VanEck has launched the US’s third exchange-traded fund (ETF) tied to Solana staking. The VanEck Solana ETF (VSOL) debuted on Monday, joining funds from Bitwise and Grayscale, which launched in late October. These funds have collectively attracted over $380 million in inflows, signaling growing investor interest in Solana-based crypto products.
The VanEck Solana ETF offers staking yields, with Solana (SOL) tokens locked on the blockchain to earn rewards. This staking mechanism is similar to those used by the Bitwise and Grayscale Solana ETFs. To remain competitive, VanEck has waived the 0.3% management fee until February 17 or until the fund reaches $1 billion in assets.
Fidelity Enters Crypto ETF Market with FSOL
Following VanEck’s launch, the Fidelity Solana ETF (FSOL) is set to debut on Tuesday. This ETF will compete directly with the VanEck Solana ETF and other similar funds. Fidelity’s entry into the market is seen as a challenge to other asset managers offering Solana-based products.
Fidelity, a major player in asset management, is expected to bring additional capital into the Solana ecosystem. The FSOL ETF will have a lower management fee of 0.25%, slightly undercutting VanEck’s fee structure. As competition intensifies, these fee structures may evolve to attract more investors.
The crypto ETF market is also seeing other exciting developments, including the expected launch of a Dogecoin ETF soon. Grayscale has filed for the Grayscale Dogecoin Trust (DOGE), which could launch as early as November 24. If it proceeds, this will be the first Dogecoin ETF in the US to hold the memecoin directly.
This move comes as Bitwise’s spot Dogecoin ETF could also launch late next week, depending on regulatory approval. These launches signal growing interest in crypto-based ETFs, offering exposure to popular digital assets like Dogecoin. The approval of these funds will likely attract more investors into the cryptocurrency space.
Solana Price Volatility as ETFs Gain Popularity
Despite the influx of capital into Solana-based ETFs, Solana’s price has remained volatile. Solana’s price recently dropped by over 20% in just a week. As of the latest data, Solana is trading at $134.35, with a 24-hour trading range of $129.02 to $142.47.
While Solana’s price has seen a decline, it also recorded a slight rebound. The 3% increase from its 24-hour low indicates continued interest from traders. With rising trading volume, the market remains dynamic, driven by new ETF launches and growing investor participation.
The VanEck Solana ETF’s debut is part of a broader trend in which asset managers have ramped up their crypto ETF offerings. These funds allow investors to gain exposure to Solana without directly buying tokens, simplifying market entry. The increasing number of Solana-related ETFs is likely to keep the market active as more players enter the space.
With approval from the Canary Marinade Solana ETF (SOLC), another Solana-based product is poised to launch on Nasdaq. Marinade Finance, a key partner in Solana staking, will back this ETF. The SOLC ETF will carry a management fee of 0.50%, which is higher than the VanEck and Fidelity offerings.
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