On October 28, 2024, Bitwise's Solana Staking ETF shattered all ETF launch records this year with a whopping $69 million inflow on day one. This extraordinary performance is reshaping market perceptions of Solana, potentially triggering a bullish trend akin to Bitcoin and Ethereum post-ETF approvals. Analysts now foresee a price target surpassing $500 for SOL.
The Bitwise Solana Staking ETF (BSOL) has achieved the most powerful start among approximately 850 ETFs launched in 2024, according to SosoValue data. With $69 million in net inflows on the first day and $57.9 million in trading volume, BSOL significantly exceeds market expectations.
This dual performance deserves attention. The high inflows demonstrate institutional appetite for exposure to Solana, while the trading volume confirms active investor participation rather than mere internal funding. This combination validates real demand and dismisses suspicions of figure manipulation.
BSOL’s unique structure partly explains this success. Unlike traditional spot ETFs that simply replicate the underlying asset’s price, BSOL integrates staking into its mechanism. Investors thus benefit from dual exposure: potential SOL price appreciation combined with on-chain staking rewards.
This financial innovation transforms the value proposition of crypto ETFs. The annual staking yield on Solana ranges between 5 and 7%, offering a revenue stream that partially offsets the inherent volatility of cryptocurrencies. For institutional investors accustomed to fixed-income products, this feature significantly reduces perceived risk.
The impact on supply dynamics shouldn’t be underestimated. Staking immobilizes a significant portion of SOL supply, reducing selling pressure on the secondary market. If ETF inflows maintain this pace, billions of dollars worth of SOL could be removed from active circulation.
The parallels with post-ETF Bitcoin and Ethereum are revealing. Spot Bitcoin ETFs have generated more than $25 billion in net inflows since their approval in January 2024, propelling BTC to new heights. Analysts anticipate that Solana could capture between $5 and $8 billion in fresh capital in the 12 to 18 months following BSOL’s launch.
Applying the same price-flow elasticity models observed with Bitcoin and Ethereum, an injection of $5 to $8 billion could generate 60 to 120% appreciation in SOL’s price. With a current price around $197, this positions the target between $300 and $450, or even beyond in an optimistic scenario.
On-chain fundamentals support this thesis. Solana currently displays more than 3 million daily active addresses and processes approximately 1,500 transactions per second in real average terms. The network has demonstrated remarkable technical stability since 2023, with zero major interruptions, erasing past stigmas.
The convergence between institutional adoption via ETFs and organic growth in the DeFi and NFT ecosystem creates an environment conducive to structural revaluation. Psychological resistance levels at $300 and $400 will constitute key tests before a potential attempt at $500.
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Charles Ledoux is a Bitcoin and blockchain technology specialist. A graduate of the Crypto Academy, he has been a Bitcoin miner for over a year. He has written numerous masterclasses to educate newcomers to the industry and has authored over 2,000 articles on cryptocurrency. Now, he aims to share his passion for crypto through his articles for InvestX.
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