The primary US-listed spot Solana exchange-traded fund (ETF) acquired $21 million of web inflows on July 8, lifting its operating complete to $41.2 million, primarily based on Farside Investors’ data.
The one-day addition to the Rex-Osprey’s Solana + Staking ETF (SSK) 104% of the $20.2 million raised over the earlier three buying and selling periods, successfully doubling web inflows.
Falling wanting BTC and ETH
SSK started buying and selling on July 2 with a 0.75% administration charge, triple the 0.25% headline cost that BlackRock and Constancy levy on their Bitcoin (BTC) and Ethereum (ETH) merchandise.
Evaluating the primary 4 buying and selling days for every asset class reveals a disconnect between the flows and the market capitalization of the underlying property.
Bitcoin spot ETFs earned about $2.9 billion throughout their first 4 periods in January, which is roughly 0.34% of BTC’s market capitalization on the time.
Ethereum spot ETFs absorbed virtually $1.2 billion over their opening quartet in late June, or 0.3% of Ether’s market worth as soon as Grayscale’s legacy outflows are stripped out, per the identical dataset.
In contrast, Solana’s $41.2 million equates to roughly 0.05% of SOL’s circulating provide, roughly 16.7% of the penetration degree achieved by the sooner Bitcoin and Ethereum launches.
Charge drag and single-issuer construction
One purpose for the divergence is the associated fee. Rex-Osprey’s 0.75% levy ranks as the best amongst US spot crypto ETFs, whereas its seed stock of simply $600,000 suggests restricted approved participant warehousing capability.
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% throughout the first 12 months.
Moreover, Rex-Osprey stays the only real issuer of Solana ETFs, whereas 9 issuers competed in Bitcoin’s debut and eight launched Ethereum merchandise.
Whereas the small base and better expense ratio go away SSK’s early consumption beneath that of its large-cap counterparts, the fund’s doubling on July 8 exhibits an incremental urge for food from allocators undeterred by value.
