Solana, Litecoin, and Hedera ETFs Launch on Wall Street
Wall Street welcomed its first spot Solana ETF, Litecoin ETF, and Hedera ETF on October 28, 2025. On Monday, the New York Stock Exchange and Nasdaq posted listing notices for four new cryptocurrency exchange-traded funds. These ETFs represent the first launches for new crypto assets following the approval of spot Bitcoin and Ethereum ETFs in 2024.
Bitwise’s Solana ETF (BSOL) debuted on the New York Stock Exchange and traded $10 million in volume in its first 30 minutes. Canary Capital’s Hedera ETF (HBR) and Litecoin ETF (LTCC) posted $4 million and $400,000, respectively, on Nasdaq. The launch marks a turning point for altcoin investments in regulated markets.
How the Solana ETF Offers Staking Rewards to Investors
Bitwise’s Solana ETF offers 7% annualized staking rewards with zero management fees. BSOL offers direct exposure to Solana with 100% of assets staked. This structure removes technical barriers for institutional investors seeking blockchain yields. The fee waiver applies for three months or up to $1 billion of assets.
Matt Hougan, Bitwise CIO, stated that Solana is “a legitimate contender in the race to dominate the stablecoin and tokenization market.” Traditional investors now have a low-cost method to gain exposure to digital asset growth. The staking feature provides passive income alongside market participation.
Institutional Investment Flows Into Altcoin ETF Products
Bloomberg Intelligence ETF analyst James Seyffart projects that Solana’s ETF alone could pull in over $3 billion in the first 12 to 18 months. The spot Bitcoin ETFs brought in $628 million in flows on their first day across multiple issuers. Early trading volume suggests strong institutional appetite for altcoin exposure.
Kristin Smith from the Solana Policy Institute describes BSOL as a bridge between decentralized finance and Wall Street. The regulated structure appeals to institutions that cannot hold cryptocurrencies directly. Custody arrangements through Coinbase Custody and BitGo add security layers for conservative investors.
Understanding Generic Listing Standards for Crypto ETFs
In September, the SEC approved generic listing standards for crypto ETFs, paving the way for speedier listings. Approvals now don’t require 19b-4 filings, eliminating that roadblock. Canary Capital was the first to apply this revised framework on October 7, filing for its Litecoin and Hedera ETFs.
The funds launched under the Securities Act of 1933, a regulatory structure commonly used for commodity-based ETFs. This classification differs from the Investment Company Act of 1940 structure. The streamlined process allowed launches despite the ongoing government shutdown.
Market Response to Litecoin ETF and Hedera ETF Launches
Hedera surged 17.4% in the past 24 hours, trading at $0.2096 as traders priced in anticipation of the first HBAR ETF approval. Hedera’s 24-hour trading volume skyrocketed 425% to nearly $1 billion, one of the largest daily increases in its history. Litecoin gained traction with renewed investor confidence in its payment infrastructure.
Litecoin, often called “digital silver,” has one of the longest-running blockchains, boasting 14 years of uninterrupted uptime. Hedera represents the next generation of enterprise Web3 infrastructure used by Fortune 500 companies to tokenize assets. Both networks now have regulated investment vehicles for mainstream adoption.
Conclusion
Over 150 altcoin ETFs tracking 35 assets have been filed with the SEC. The successful launch of Solana ETF, Litecoin ETF, and Hedera ETF products sets a precedent for additional approvals. XRP, Cardano, and Avalanche remain among the most anticipated candidates for future listings.
The expansion beyond Bitcoin and Ethereum demonstrates regulatory acceptance of diverse blockchain networks. Investors now have more options to build diversified crypto portfolios through traditional brokerage accounts, signaling growing legitimacy for alternative cryptocurrencies in institutional finance.
