VanEck has introduced the United States' third exchange-traded fund (ETF) that features Solana staking. This launch signals a growing trend of altcoin-tied funds entering the market.
The VanEck Solana ETF (VSOL) began trading on Monday. It follows similar funds from Bitwise and Grayscale, which debuted in late October and have collectively attracted over $380 million in inflows.
Similar to the ETFs offered by Bitwise and Grayscale, VSOL provides staking yields. This means that Solana (SOL) is locked up on the blockchain to generate rewards. To remain competitive, VanEck has also waived its 0.3% fee until February 17 or until the fund reaches $1 billion in assets.
Asset managers have been rapidly introducing crypto ETFs following a change in the Securities and Exchange Commission's listing standards in September. This alteration allows for quicker approvals, eliminating the need for an individual assessment of each fund.
Bloomberg ETF analyst Eric Balchunas announced on Monday that the Fidelity Solana ETF (FSOL) is scheduled to launch on Tuesday. This fund will compete with three existing similar offerings that currently charge a 0.25% fee.
Balchunas commented that Fidelity is "easily the biggest asset manager in this category with BlackRock sitting out."
Dogecoin ETF Could Launch as Soon as Monday
Balchunas also anticipates the launch of a Dogecoin (DOGE) ETF from Grayscale on November 24. This expectation is based on an amended regulatory filing submitted earlier this month, which initiated a 20-day period during which the ETF can launch if the SEC does not respond.
The Grayscale Dogecoin Trust (DOGE) represents a conversion of Grayscale's existing fund. It is slated to trade on the New York Stock Exchange, which still needs to file for the ETF's listing.
"We’ll see, won’t be 100% till exchange notice, but based on SEC guidance, it looks good," Balchunas added.
If Grayscale's fund launches next week, it will be the first Dogecoin ETF in the US that can directly hold the cryptocurrency.
Asset issuers REX Shares and Osprey Funds jointly launched a DOGE ETF in mid-September. This fund was registered under the Investment Company Act of 1940, which restricts its investment to a wholly owned offshore subsidiary that holds the cryptocurrency.
Bitwise might also see its spot Dogecoin ETF launch late next week. This follows a change in its regulatory filing for the product on November 6, which triggered a 20-day launch timer unless the SEC intervenes.