VanEck Launches Third US Solana Staking ETF Amid Surge in Altcoin Funds
VanEck has launched the third US Solana staking ETF, named VSOL, joining Bitwise and Grayscale in the growing market segment. VSOL went live on Monday and offers Solana staking rewards with a temporary zero-fee structure; its 0.3% management fee is waived until February 17 or until assets reach $1 billion.
This launch contributes to the momentum behind altcoin ETFs, with Bitwise and Grayscale attracting more than $380 million in inflows since late October. Fidelity's Solana ETF (FSOL) is also set to debut soon, indicating an expanding lineup of Solana-focused funds. Notably, Fidelity is the largest asset manager in this category, while BlackRock has yet to enter this space.
Meanwhile, Grayscale is preparing to launch a Dogecoin ETF as early as November 24 through the conversion of the Grayscale Dogecoin Trust. This ETF would trade on the NYSE and hold Dogecoin directly, representing the first US ETF to do so. Current Dogecoin ETFs, such as those from REX and Osprey, hold the cryptocurrency via offshore subsidiaries. Bitwise is also rumored to be considering entry into the Dogecoin ETF market with a potential launch in late November.
Despite these developments, the digital asset investment product sector has seen significant outflows recently. Weekly outflows reached about $2 billion, totaling $3.2 billion over three weeks, with US products accounting for $1.97 billion. Consequently, total assets under management have fallen 27% to approximately $191 billion since early October.
The momentum for new crypto product launches has been partially driven by a September SEC rule change that streamlined the approval process for crypto investment products, spurring many issuers to introduce new offerings rapidly.
