First Solana ETF: Could the launch mark the beginning of an altcoin ETF season?
The launch of the Solana ETF may signal the beginning of the altcoin ETF season.
Last week brought a significant event to the crypto industry — the launch of the first exchange-traded fund based on Solana. It seems that predictions of summer 2025 being the season for new crypto ETFs are starting to come true.
On July 2, the first Solana ETF with a staking feature — the REX-Osprey Solana Staking ETF (SSK) — was launched in the United States. While the SEC had several applications under review for Solana-based ETFs, it was REX Shares and Osprey Funds that managed to launch the first product of its kind.
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The debut of the fund on the CBOE BZX was successful, with $33 million in trading volume and $12 million in net inflows on the first day. The hype is understandable — the new ETF offers investors not only direct exposure to spot SOL but also a chance to earn passive income through staking.
Back in May, the SEC resisted the idea of such a fund, questioning whether it met the definition of an “investment company.” However, REX-Osprey resolved the issue by allocating around 40% of its assets to ETPs, mostly outside the United States.
It’s important to note that SSK is not a classic spot ETF in the traditional sense. It is registered under the Investment Company Act of 1940 and structured as a C-corporation, which allowed it to bypass the SEC’s standard spot ETF approval process.
A basket-based crypto ETF
Last week was full of ETF-related developments. In addition to the Solana fund launch, the SEC granted approval to Grayscale to convert its large-cap digital fund into an exchange-traded fund.
In simple terms, this means creating an ETF made up of the five largest cryptocurrencies by market cap: Bitcoin (80.2% of the fund), Ethereum (11.3%), Solana (2.7%), XRP (4.8%), and Cardano (0.81%).
However, the celebration didn’t last long. That same day, the SEC put the conversion of the Grayscale Digital Large Cap Fund LLC on hold.
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The agency clarified that the product still requires a vote from SEC commissioners. Analysts believe the regulator may simply be buying time. The real reason could be the SEC's intention to first establish a framework for crypto ETFs — or lingering concerns about GDLC itself.
The altcoin-ETF season
Now let’s talk about what’s next. Fully-fledged spot Solana ETFs are likely to arrive in the near future — at least according to Bloomberg analyst James Seyffart.
“We’re expecting a wave of new ETFs in the second half of 2025,” the expert said.
Regarding other crypto ETF filings, he believes that spot ETFs for XRP and Litecoin will receive the necessary approvals by year-end.
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His colleague, Bloomberg analyst Eric Balchunas, agrees. While he doesn’t expect the same demand as for Bitcoin ETFs, he is confident these products will succeed.
“Prepare for a potential altcoin ETF summer, with Solana likely to lead the pack,” he wrote.
A new beginning
The launch of the first Solana ETF with staking marks a symbolic new chapter in the evolution of crypto investment products. The offering from REX Shares and Osprey Funds not only opens access to one of the most popular altcoins but also introduces a novel approach to earning yield through staking.
Despite the cautious stance of regulators, the market is clearly signaling readiness for broader adoption of crypto ETFs. While the SEC delays decisions on larger and more complex products like the Grayscale Digital Large Cap Fund, investors are anticipating a new wave of approvals. Bloomberg analysts suggest that the second half of 2025 could be pivotal for crypto ETFs, especially with the potential arrival of spot funds for XRP, Litecoin, and other altcoins.
Thus, the arrival of SSK can be viewed not just as a milestone for Solana, but as a key indicator that altcoin ETFs may be the next major phase in the evolution of digital asset investment products. If current momentum continues, we could indeed be witnessing the beginning of the “altcoin ETF summer.”
