Grayscale’s new spot Solana exchange-traded fund (ETF) made its market debut on October 29, drawing $1.4 million in net inflows on its first day of trading, according to data from Farside Investors and SoSoValue. The fund, known as GSOL, recently transitioned from a closed-end trust structure into a fully tradable ETF.
The launch came amid turbulent market conditions, as investors withdrew more than $500 million from U.S. spot Bitcoin and Ethereum ETFs following the Federal Reserve’s latest rate decision.
Bitwise Leads Solana ETF Race
While Grayscale’s ETF opened to modest inflows, Bitwise’s rival product, BSOL, captured the lion’s share of investor attention. The fund added $46.5 million on October 29, following $69.5 million in inflows on its first day.
BSOL also generated impressive trading volume, topping $57.9 million on its debut, the strongest first-day performance of any ETF launch in 2025, and nearly $75 million on day two. Bloomberg ETF analyst Eric Balchunas described the turnout as “a huge number,” crediting Bitwise’s first-mover advantage.
By comparison, Grayscale’s GSOL recorded $4.9 million in day-one trading volume and charges a higher 0.35% management fee, versus Bitwise’s 0.2%. Analysts suggest the timing of Grayscale’s launch, just one day after BSOL, may have limited early investor traction, even as other major issuers such as Fidelity, VanEck, and 21Shares prepare to enter the Solana ETF space.
REX-Osprey’s Staking Fund Paved the Way
Before the current wave of Solana ETFs, REX-Osprey had already introduced a first-of-its-kind fund, SSK, in July. The ETF offered direct Solana exposure with native staking rewards, operating under the Investment Company Act of 1940 rather than the 1933 framework used by GSOL and BSOL. SSK primarily holds staked SOL, alongside smaller positions in exchange-traded and liquid staking assets.
The recent cluster of ETF approvals followed the SEC’s decision to allow issuers to proceed with filings during the U.S. government shutdown. By leveraging new generic listing standards for commodity trust shares, issuers like Grayscale and Bitwise were able to move forward despite reduced regulatory operations.
Altcoin ETFs Gain Ground
Meanwhile, smaller digital-asset ETFs also entered the market this week. Canary Capital’s new HBAR and Litecoin ETFs (tickers HBR and LTCC) launched on October 28 and attracted their first net inflows the following day, $2.2 million for HBAR and $485,000 for LTCC.
Both funds saw steady trading volumes of around $7 million and $1.5 million respectively, suggesting early but growing interest in diversified crypto exposure beyond Bitcoin and Ethereum.
Capital Flows Shift Away from Bitcoin and Ethereum
In stark contrast, established Bitcoin and Ethereum ETFs recorded over $500 million in combined outflows on October 29. Bitcoin funds accounted for the bulk of the withdrawals ($470.7 million) led by $164.4 million exiting Fidelity’s FBTC. Ethereum products saw a smaller pullback of $81.4 million, though Fidelity’s FETH again led with $69.5 million in redemptions.
Overall, Bitcoin ETFs traded $7 billion in volume on the day, while Ethereum ETFs reached $2.4 billion, highlighting continued market activity despite investor caution.
Macro Pressure Dampens Crypto Sentiment
Both Bitcoin and Ethereum were down around 2.4% in the past 24 hours, trading near $110,055 and $3,897, respectively. Solana slipped 0.9% to $192, while Litecoin edged 0.2% lower to $97. HBAR was the day’s sole gainer, climbing 4% to $0.20.
Analysts attribute the outflows and price weakness to remarks from Federal Reserve Chair Jerome Powell, who maintained a cautious tone despite announcing another 25-basis-point rate cut.
“Markets were blindsided less by the cut itself than by Powell’s warning that another reduction in December isn’t guaranteed,” said Timothy Misir, Head of Research at BRN. “That uncertainty tightened financial conditions and amplified ETF outflows.”
