The landscape of cryptocurrency exchange-traded funds (ETFs) is rapidly expanding. Following the introduction of Bitcoin spot ETFs, a wave of new products focused on "altcoins" like Solana and Dogecoin is flooding the market, offering investors broader exposure to digital assets.
The latest development comes from asset manager VanEck, which launched its Solana ETF (VSOL) on Monday, intensifying competition in the space. This marks the third U.S.-listed Solana ETF offering staking rewards, following Bitwise and Grayscale. The first two funds have collectively attracted over $380 million in inflows since their late October debut.
Meanwhile, the highly anticipated Dogecoin ETF is nearing launch. According to Bloomberg ETF analyst Eric Balchunas, Grayscale's Dogecoin ETF could debut as early as November 24, potentially becoming the first U.S. ETF to hold the cryptocurrency directly. Bitwise's spot Dogecoin ETF may also launch later next week.
This surge in ETF issuance follows the U.S. Securities and Exchange Commission's (SEC) relaxed listing standards in September, which accelerated approval processes. The influx of new products is fueling competition among issuers, reshaping crypto investment dynamics through fee wars and staking rewards.
**Solana ETF Competition Heats Up with Fee Battle** With the launch of VanEck's Solana ETF (VSOL), competition among Solana-focused ETFs is escalating. Like Bitwise and Grayscale's offerings, VSOL provides investors with staking rewards from Solana blockchain assets.
To stand out, VanEck adopted an aggressive pricing strategy, waiving its 0.3% management fee until February 17 or until the fund reaches $1 billion in assets.
Bloomberg's Balchunas noted that Fidelity's Solana ETF (FSOL), expected on Tuesday with a 0.25% fee, will compete directly with the three existing funds. He added, "BlackRock, the world's largest asset manager, is not currently participating in this category."
**Dogecoin ETF Launch Imminent, Grayscale Leads** After Solana, market attention is shifting to Dogecoin-targeted ETFs. Grayscale plans to convert its existing Grayscale Dogecoin Trust (DOGE) into a spot ETF, which will trade on the NYSE.
A revised regulatory filing this month triggered a 20-day grace period; if the SEC raises no objections, the fund could launch as early as November 24. Balchunas stated, "The SEC's guidance looks favorable," but cautioned, "Nothing is 100% certain until the exchange notice is out."
If successful, Grayscale's ETF would be the first U.S. fund to hold Dogecoin directly. Bitwise also amended its filing on November 6, starting a 20-day countdown that could see its spot Dogecoin ETF launch later next week.
**Regulatory Shift Spurs ETF Wave** The "altcoin" ETF boom stems from regulatory changes. Since the SEC adjusted listing standards in September, asset managers have gained faster approval pathways without individual fund assessments, driving this issuance surge.
Previously, structurally different products existed. For example, REX Shares and Osprey Funds launched a Dogecoin ETF in mid-September under the 1940 Investment Company Act, which holds the crypto via overseas subsidiaries rather than directly.
In contrast, spot ETFs from Grayscale and Bitwise will provide direct cryptocurrency exposure to investors.
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