VanEck Launches Solana Staking ETF Amid Growing Altcoin Fund Market

According to Cointelegraph, VanEck has introduced the United States' third exchange-traded fund (ETF) featuring Solana staking, marking a significant development as more altcoin-tied funds are anticipated to enter the market soon. The VanEck Solana ETF (VSOL) made its debut on Monday, joining the ranks of similar funds from Bitwise and Grayscale, which launched in late October and have collectively attracted over $380 million in inflows. VSOL, like its counterparts from Bitwise and Grayscale, offers staking yields by locking Solana (SOL) on the blockchain to earn rewards. In a strategic move to compete, VanEck has waived its 0.3% fee until February 17 or until the fund reaches $1 billion in assets. This surge in crypto ETFs follows the Securities and Exchange Commission's decision in September to amend its listing standards, facilitating faster approvals without the need for individual fund assessments. Bloomberg ETF analyst Eric Balchunas noted on Monday that the Fidelity Solana ETF (FSOL) is set to launch on Tuesday, entering a competitive landscape with three existing funds that impose a 0.25% fee. Balchunas highlighted Fidelity's position as the largest asset manager in this category, with BlackRock opting not to participate. In addition, Balchunas mentioned the potential launch of a Dogecoin (DOGE) ETF from Grayscale on November 24, following an amended regulatory filing earlier this month. This filing initiated a 20-day period during which the ETF can launch if the SEC does not respond. The Grayscale Dogecoin Trust (DOGE) is a conversion from its existing fund and would trade on the New York Stock Exchange, pending the exchange's filing to list the ETF. Balchunas expressed optimism about the launch, stating, "We'll see, won't be 100% till exchange notice, but based on SEC guidance, it looks good." If Grayscale's fund launches next week, it will be the first Dogecoin ETF in the U.S. capable of directly holding the memecoin. Asset issuers REX Shares and Osprey Funds jointly launched a DOGE ETF in mid-September, registered under the Investment Company Act of 1940, which restricts its investment to a wholly owned offshore subsidiary holding the cryptocurrency. Bitwise may also see its spot Dogecoin ETF launch late next week, following a regulatory filing change on November 6 that triggered a 20-day launch timer, unless the SEC intervenes.