Key Highlights
- •VanEck has launched its third staking-enabled Solana ETF in the US, offering an initial waiver on management fees.
- •Fidelity is preparing to launch its own Solana ETF, intensifying competition in the altcoin ETF market.
- •Grayscale and Bitwise are poised to introduce the first direct-holding Dogecoin ETFs in the US soon.
VanEck has introduced a new exchange-traded fund (ETF) focused on Solana, becoming the third such staking-enabled product available in the US. This launch signifies the accelerating pace at which major asset managers are expanding their altcoin ETF strategies.
The VanEck Solana ETF, trading under the ticker VSOL, began trading on Monday. It joins earlier launches from Bitwise and Grayscale, which collectively attracted over $380 million in assets shortly after their debut in late October.
Fee Waiver and Staking Rewards to Drive Early Adoption
Similar to its competitors, the VSOL ETF provides staking rewards by locking Solana (SOL) tokens on-chain. To enhance its market position, VanEck has implemented a temporary suspension of its 0.3% management fee. This waiver will remain in effect until February 17 or until the fund reaches $1 billion in assets. This strategy reflects the increasingly competitive environment among crypto-focused fund issuers vying for investor capital.
The swift introduction of these crypto ETFs is a consequence of the US Securities and Exchange Commission's (SEC) updated listing framework, which was introduced in September. This framework allows issuers to proceed with new products without undergoing lengthy individual product assessments.
Fidelity Poised to Enter the Solana ETF Market
According to Bloomberg ETF analyst Eric Balchunas, the Fidelity Solana ETF (FSOL) is anticipated to launch on Tuesday. This move will immediately place one of the world's largest financial institutions into the Solana ETF landscape. The FSOL ETF is set to compete directly with existing products, offering a management fee of 0.25%.
Balchunas also highlighted that Fidelity is the most significant asset manager currently involved in the Solana ETF sector. He noted that BlackRock has not yet entered this particular product category.
Dogecoin ETF Could Launch Within Days
The competition in the ETF space is expanding beyond just layer-1 tokens. Balchunas has indicated that the first US Dogecoin ETF, which will directly hold the memecoin, could be launched as early as November 24. The forthcoming product from Grayscale aims to convert its existing Dogecoin Trust into a fully tradable ETF on the New York Stock Exchange, pending a final notice from the exchange.
If the SEC does not intervene before the expiration of the 20-day review period, which began earlier this month, the fund could become available as early as Monday. Concurrently, Bitwise is also expected to have its Dogecoin ETF listed next week, following a similar regulatory countdown that commenced on November 6.