The primary US-listed spot Solana exchange-traded fund (ETF) obtained $21 million of internet inflows on July 8, lifting its operating complete to $41.2 million, based mostly on Farside Buyers’ information.
The one-day addition to the Rex-Osprey’s Solana + Staking ETF (SSK) 104% of the $20.2 million raised over the earlier three buying and selling periods, successfully doubling internet inflows.
[Editor’s Note: SSK isn’t a pure spot ETF. At least 40% of its assets are allocated to other Solana ETFs, primarily issued outside the U.S., with the remainder directly invested in Solana. This structure was approved under the Investment Company Act of 1940, differing from the approval route of the infamous spot Bitcoin and Ethereum ETFs.
Several asset managers, including Franklin Templeton, VanEck, Grayscale, 21Shares, Bitwise, and Canary Capital, have filed applications with the SEC to launch spot Solana ETFs. These applications are currently under review.]
Falling wanting BTC and ETH
SSK started buying and selling on July 2 with a 0.75% administration payment, triple the 0.25% headline cost that BlackRock and Constancy levy on their Bitcoin (BTC) and Ethereum (ETH) merchandise.
Evaluating the primary 4 buying and selling days for every asset class reveals a disconnect between the flows and the market capitalization of the underlying property.
Bitcoin spot ETFs earned about $2.9 billion throughout their first 4 periods in January, which is roughly 0.34% of BTC’s market capitalization on the time.
Ethereum spot ETFs absorbed nearly $1.2 billion over their opening quartet in late June, or 0.3% of Ether’s market worth as soon as Grayscale’s legacy outflows are stripped out, per the identical dataset.
Against this, Solana’s $41.2 million equates to roughly 0.05% of SOL’s circulating provide, roughly 16.7% of the penetration degree achieved by the sooner Bitcoin and Ethereum launches.
Payment drag and single-issuer construction
One cause for the divergence is the fee. Rex-Osprey’s 0.75% levy ranks as the best amongst US spot crypto ETFs, whereas its seed stock of simply $600,000 suggests restricted approved participant warehousing capability.
Constancy and BlackRock launched their Bitcoin funds with seed baskets exceeding $300 million and fee-waiver schedules that decreased to 0.12% and 0.20% through the first yr.
Moreover, Rex-Osprey stays the only real issuer of Solana ETFs that immediately maintain SOL.
Whereas the small base and better expense ratio go away SSK’s early consumption beneath that of its large-cap counterparts, the fund’s doubling on July 8 exhibits an incremental urge for food from allocators undeterred by value.
