VanEck launched its Solana (SOL) ETF on Monday, becoming the third U.S. fund to offer staking rewards on the blockchain-based cryptocurrency. The VanEck Solana ETF (VSOL) joins earlier entrants from Bitwise and Grayscale, which collectively attracted over $380 million in inflows since their late October launches.
Like its competitors, VSOL allows investors to earn staking rewards by locking SOL on the blockchain. To entice early investors, the fund has waived its 0.3% management fee until Feb. 17 or $1 billion in assets—whichever comes first. Analysts note this aggressive pricing could intensify competition among the growing number of altcoin-focused ETFs.
The surge in launches follows an SEC update in September that simplified listing standards, allowing asset managers to bring crypto ETFs to market faster without extensive individual assessments.
Fidelity and Other Altcoin ETFs Join the Market
Additional altcoin ETFs are poised to hit the market this week. Bloomberg analyst Eric Balchunas noted the Fidelity Solana ETF (FSOL) is expected to launch Tuesday, offering a 0.25% fee and competing directly with VanEck, Bitwise, and Grayscale.
Key dynamics in the altcoin ETF space include:
- Lower management fees to attract inflows
- Staking-enabled rewards for SOL holders
- Rapid launches due to eased SEC requirements
- Increasing institutional adoption of cryptocurrency ETFs
Balchunas emphasized that Fidelity is now the largest asset manager entering this category, particularly with BlackRock remaining absent from Solana-focused ETFs for now.
Grayscale’s Dogecoin ETF Could Debut Monday
Investor attention is also turning to Dogecoin (DOGE), with Grayscale planning a U.S. ETF conversion of its existing Dogecoin Trust. If approved, the fund could trade on the New York Stock Exchange as soon as Nov. 24, pending SEC approval timelines. This would mark the first U.S. Dogecoin ETF able to directly hold the cryptocurrency.
Other market updates:
- REX Shares and Osprey Funds launched a DOGE ETF in mid-September, but it holds crypto offshore due to 1940 Act regulations.
- Bitwise may also launch its spot DOGE ETF late next week following SEC filing updates.
With the ETF pipeline expanding rapidly, analysts anticipate heightened investor interest in both Solana and Dogecoin funds, signaling growing mainstream adoption for altcoin-focused exchange-traded products.
