On the first day of listing, Solana, Hedera, and Litecoin ETF saw a volume of 65 million dollars.

Solana, Hedera, and Litecoin ETFs made their debut on Wall Street on Tuesday, with a total volume of $65 million. Canary Capital's Litecoin ETF and Hedera HBAR ETF are the first U.S. funds to track the spot prices of Litecoin and HBAR tokens, launching alongside the Bitwise Solana Staking ETF.

Solana ETF is leading the way, with over ten million in trading volume in the first hour

(Source: Bloomberg)

Bitwise Solana Staking ETF (BSOL) demonstrated overwhelming market demand on its first day of trading. According to Bloomberg senior ETF analyst Eric Balchunas's post on X, within the first hour of trading alone, BSOL's trading volume reached $10 million, far surpassing Hedera's $4 million and Litecoin's $400,000. For the entire day, BSOL's $56 million trading volume set the record for the highest first-day trading volume among all ETFs this year.

“Surprisingly, it launched the project with $220 million in seed funding. It could have invested the seed funding on the first day, ultimately earning around $280 million in returns, even higher than the first-day issuance price of the Ethereum Spot ETF. In any case, this is a strong start,” Balchunas said. This performance shows that institutional investors are much more interested in Solana than in other altcoins.

The uniqueness of BSOL lies in the fact that it is the first 100% direct investment in SOL that incorporates staking into a U.S. ETP. According to Bitwise, the fund aims to include 100% of its SOL holdings in an internal staking mechanism, meaning that investors can not only benefit from the price appreciation of SOL but also enjoy passive income from staking rewards. This design provides traditional investors with a compliant and convenient way to participate in the Solana ecosystem without having to manage wallets themselves or understand complex staking mechanisms.

The strong performance of Solana reflects the blockchain's dominance in the DeFi, NFT, and meme coin sectors. Although the price of SOL has dropped by 2.4% in the past 24 hours, the enthusiastic market response to the Solana ETF shows that investors are optimistic about its long-term prospects. Solana's high throughput (theoretically 65,000 transactions per second) and low transaction fees make it a major competitor to Ethereum, while the addition of staking yields further enhances the appeal of BSOL.

Hedera and Litecoin ETF Expanding Investment Horizons in Altcoins

The two ETFs launched by Canary Capital have opened a compliant channel for investors to enter the Hedera and Litecoin ecosystems. The Canary Litecoin ETF (LTCC) is the first U.S. ETP to invest 100% directly in Litecoin tokens, with a trading volume of $400,000 on its first day. As one of the earliest Bitcoin forks, Litecoin has maintained stable operation since its launch in 2011, known for fast transaction confirmations and low fees.

The Canary Hedera HBAR ETF (HBR) achieved a first-day trading volume of $4 million, which is ten times that of LTCC. HBAR is the native Token of Hedera, which is a decentralized public network that utilizes the Hashgraph consensus algorithm to facilitate fast and secure transactions. According to HBAR price data from The Block, the Token has risen by 11% in the past 24 hours, briefly surging nearly 30%. This dramatic price reaction demonstrates the catalytic effect of the ETF listing on the Token's price.

At the same time, the price of Litecoin has dropped by about 2.6%, contrasting with the market's enthusiasm for both. This difference may stem from Hedera's technological innovation and relatively new market positioning, whereas Litecoin, as an established cryptocurrency, has a longer history of price discovery. Hedera's Hashgraph technology claims to be faster, more secure, and fairer than traditional blockchains, and this technological differentiation could be a key factor attracting investors.

Comparison of the First Day Performance of Three ETFs:

BSOL (Solana): 56 million USD volume, 220 million USD seed funding, 100% staking yield

HBR (Hedera): $4 million volume, Token price increased by 11%, Hashgraph technology innovation

LTC (Litecoin): 400,000 USD volume, a well-established fork coin, steadily operating for 14 years.

155 applications queued, the wave of Wall Street cryptocurrency ETFs is coming

As of October 20, there have been over 155 cryptocurrency-based ETP applications covering 35 different digital assets. Among them, the most applications are based on SOL and BTC, each with 23, followed by XRP and Ethereum. “In the next 12 months, the market is likely to see more than 200 such ETPs. This is simply a wave of land grabbing,” Balchunas said.

This wave of applications is partly due to the new guidelines released by the SEC after the government shutdown. The SEC stated that companies can now submit S-1 documents for registration without a “postponed amendment.” Postponed amendments typically prevent the issuance from automatically taking effect after 20 days. Under the new process, the S-1 document must be the final document, and any changes will restart the 20-day countdown. Companies must also submit Form 8-A. This streamlined process significantly accelerates the listing speed of ETFs.

The Spot cryptocurrency ETF will debut on Wall Street in January 2024, with the Bitcoin fund making its first appearance, followed by the Ethereum fund debuting in July. The total assets under management of these ETFs have reached $175 billion, indicating a rapid increase in institutional investors' acceptance of cryptocurrencies. In contrast, the first two U.S. ETFs offering Spot exposure to XRP and Dogecoin had a total trading volume of $55 million on their first day last month, while the nine ETH Spot ETFs had a first-day trading volume of over $1 billion last year.

The $65 million first-day volume of the Solana, Hedera, and Litecoin ETFs falls in the middle of this range, indicating that while market interest in altcoin ETFs is not as strong as that for Bitcoin and Ethereum, it is still quite significant. With more altcoin ETFs being approved, investors will have a more diversified choice for allocating their cryptocurrency portfolios without the need to directly hold and manage digital assets.

The era of Shanzhai coin ETF officially begins

The successful launch of three ETFs marks the official beginning of the altcoin ETF era. The Solana ETF demonstrated the strong market demand for high-performance blockchain with a first-day volume of $56 million, while the Hedera ETF's $4 million volume and 11% token price increase showcased the appeal of innovative technology. Although the Litecoin ETF had a smaller volume, it provided a compliant investment channel for established cryptocurrencies.

The recent wave of ETF has a profound impact on the cryptocurrency market. Firstly, it provides institutional and traditional investors with convenient tools for cryptocurrency investment, without facing technical barriers such as wallet management, private key custody, and exchange risks. Secondly, the launch of ETFs enhances the compliance and mainstream acceptance of cryptocurrencies, helping to attract more conservative investors into the market. Thirdly, the trading activity of ETFs provides additional liquidity and price support for the underlying tokens.

With 155 ETP applications queued for approval, investors can expect to see more altcoin ETFs launched in the coming months. These funds will cover various segments such as DeFi, Layer-1 blockchains, privacy coins, meme coins, and provide investors with unprecedented cryptocurrency investment options.