The newly introduced REX-Osprey Solana + Staking ETF hit the US market, impressing analysts with a trading volume of $33 million on its debut day.
Unique Edge of Staking
The Solana ETF provides investors with passive access to holding Solana and earning staking rewards. Its $33 million trading volume on the opening day overshadowed the debut performances of the Solana futures ETF and XRP futures ETF this year. The surge in volume was primarily driven by short-term investors opting for liquid SOL coin investments.
Demand Gap Against Bitcoin and Ethereum
In contrast, Bitcoin ETFs launched on January 11, 2024, closed their first trading day with a remarkable $4.6 billion, while Ethereum ETFs reached $1 billion. This stark difference indicates that the inaugural trading volume of the Solana ETF mainly attracts a limited investor demographic, as mainstream funds tend to focus on more established cryptocurrencies.
Future of Solana in the ETF Market
Nevertheless, Solana exceeding the initial success of the XRP futures ETF indicates a significantly higher level of institutional acceptance. Analysts suggest that the disparity in volumes can be attributed to market capitalization, regulatory clarity, and the maturity of investor profiles. Moving forward, Solana's challenge will be to enhance its daily trading volume through consistent capital inflow.
The successful launch of the new Solana ETF marks a significant event in the market, showcasing both opportunities and challenges for Solana moving forward.
