Solana ETFs Could Draw Over $3B If Bitcoin, Ether ETF Trends Repeat

Core Insights - The launch of the first U.S. spot ETFs for Solana, Hedera, and Litecoin marks a significant development in providing regulated exposure to crypto assets beyond Bitcoin and Ethereum [1] - Solana's ETF is projected to attract over $3 billion in flows within the first 12 to 18 months if it maintains early momentum [1][2] Market Comparison - Solana's market cap is approximately 5% of Bitcoin's and 22% of Ethereum's, indicating potential for significant inflows similar to those seen in Bitcoin and Ethereum ETFs [2] - The initial trading volumes for the ETFs were notable, with Solana's ETF trading $10 million in the first 30 minutes, while Hedera and Litecoin ETFs traded $4 million and $400,000, respectively [2] Volume Expectations - Projections for the end of the first trading day estimate Solana's ETF to reach $52 million in volume, with Hedera and Litecoin expected to hit $8 million and $7 million [3] - The funds launched under the Securities Act of 1933, which allows for a more streamlined regulatory process compared to the Investment Company Act of 1940 [3] Historical Context - For context, spot Bitcoin ETFs garnered $628 million in flows on their first day, while spot Ethereum ETFs saw $106 million [4] - Grayscale's Solana Trust is set to begin trading, potentially adding to the competitive landscape of crypto ETFs [4] Market Cap Insights - Hedera's market cap is about 8% of Solana's, while Litecoin's is approximately 7%, suggesting that their ETFs may attract smaller inflows compared to Solana's [5]