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The first US-listed spot Solana exchange-traded fund (ETF) received $21 million of net inflows on July 8, lifting its running total to $41.2 million, based on Farside Investors’ data.Â
The one-day addition to the Rex-Osprey’s Solana + Staking ETF (SSK) 104% of the $20.2 million raised over the previous three trading sessions, effectively doubling net inflows.
[Editor’s Note: SSK isn’t a pure spot ETF. At least 40% of its assets are allocated to other Solana ETFs, primarily issued outside the U.S., with the remainder directly invested in Solana. This structure was approved under the Investment Company Act of 1940, differing from the approval route of the infamous spot Bitcoin and Ethereum ETFs.
Several asset managers, including Franklin Templeton, VanEck, Grayscale, 21Shares, Bitwise, and Canary Capital, have filed applications with the SEC to launch spot Solana ETFs. These applications are currently under review.]
Falling short of BTC and ETH
SSK began trading on July 2 with a 0.75% management fee, triple the 0.25% headline charge that BlackRock and Fidelity levy on their Bitcoin (BTC) and Ethereum (ETH) products.Â
Comparing the first four trading days for each asset class reveals a disconnect between the flows and the market capitalization of the underlying assets.
Bitcoin spot ETFs earned about $2.9 billion during their first four sessions in January, which is roughly 0.34% of BTC’s market capitalization at the time.Â
Ethereum spot ETFs absorbed almost $1.2 billion over their opening quartet in late June, or 0.3% of Ether’s market value once Grayscale’s legacy outflows are stripped out, per the same dataset.Â
By contrast, Solana’s $41.2 million equates to approximately 0.05% of SOL’s circulating supply, roughly 16.7% of the penetration level achieved by the earlier Bitcoin and Ethereum launches.
Fee drag and single-issuer structure
One reason for the divergence is the cost. Rex-Osprey’s 0.75% levy ranks as the highest among US spot crypto ETFs, while its seed inventory of just $600,000 suggests limited authorized participant warehousing capacity.Â
Fidelity and BlackRock launched their Bitcoin funds with seed baskets exceeding $300 million and fee-waiver schedules that decreased to 0.12% and 0.20% during the first year.
Furthermore, Rex-Osprey remains the sole issuer of Solana ETFs that directly hold SOL.
While the small base and higher expense ratio leave SSK’s early intake below that of its large-cap counterparts, the fund’s doubling on July 8 shows an incremental appetite from allocators undeterred by cost.Â
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