Solana’s entry into the world of traditional finance has taken a major leap forward. Bitwise’s newly launched Solana Staking ETF (BSOL) made a spectacular debut on the New York Stock Exchange (NYSE), recording over $56 million in first-day trading volume. The fund’s strong performance highlights surging institutional interest in crypto assets that generate yield, a domain long dominated by decentralised finance (DeFi) players.

Bitwise Chief Investment Officer Matt Hougan hailed the ETF as “the missing part of the puzzle,” signalling the start of a new investment era for digital assets within traditional markets. Speaking on Cointelegraph’s Chain Reaction daily show, Hougan explained that BSOL bridges the gap between institutional-grade custody and crypto-native yield opportunities.

Bringing Staking Yield to Traditional Finance

Unlike conventional crypto ETFs such as Bitcoin and Ethereum products, which merely offer price exposure, Solana’s staking ETFs introduce an additional yield component. Hougan emphasised that BSOL investors enjoy two sources of return, the asset’s price appreciation and staking rewards from Solana’s proof-of-stake mechanism.

“As an investor in something like $BSOL, you’re not just getting Solana’s market returns,” Hougan noted. “Every year, you also earn roughly 7% in additional Solana through staking rewards. For traditional investors, that’s somewhat like receiving a dividend, though technically, it’s yield from network participation.”

The ETF effectively automates staking for investors, combining institutional-grade security and ease of access. “Once it’s in an ETF, you get everything investors love, low cost, regulated custody and brokerage-account simplicity, while still earning staking yield,” he said.

Hougan believes the BSOL ETF will soon become one of the primary global channels for investing in Solana, reflecting rising institutional demand for digital assets that combine security and yield.

Regulatory Shift Paves the Way

The successful approval and launch of Solana staking ETFs mark a pivotal regulatory shift in the United States. Hougan acknowledged that such a product would have been “impossible” during Gary Gensler’s tenure as SEC Chair.

“Even a non-staking Solana ETF was out of reach under the previous regulatory stance,” he remarked. “We barely got Ethereum through the Gary Gensler pinhole. Introducing staking, which adds tax and liquidity complexities, was unthinkable then.”

Recent policy changes, however, have eased the path for crypto-linked financial instruments. The SEC’s more open approach has allowed firms like Bitwise and Grayscale to introduce staking-enabled exchange-traded products (ETPs) tied to proof-of-stake assets.

Grayscale’s Solana Trust ETF (GSOL) launched alongside BSOL, both serving as trailblazers for a new class of yield-generating crypto funds. According to Hougan, these approvals are “major proof-of-concept moments” that will likely encourage future ETPs incorporating staking across other blockchain ecosystems.

Record Trading Volume and Network Impact

Bloomberg senior ETF analyst Eric Balchunas reported that Bitwise’s BSOL ETF had the highest first-day trading volume of any ETF debut in 2025, a remarkable milestone for a crypto-linked fund. The ETF launched with $222 million in assets, equivalent to over 1.1 million SOL tokens staked on the network.

Beyond investor returns, the ETF’s structure also supports the health and decentralisation of the Solana blockchain. By delegating tokens to validators through institutional staking, BSOL contributes to network security and transaction validation.

“This is not just an investment vehicle, it’s active participation in the Solana ecosystem,” Hougan said. “It brings real economic and security benefits to the network itself.”

A New Era for Crypto ETFs

The launch of Solana staking ETFs could redefine how traditional investors engage with blockchain networks. By combining regulatory clarity, passive yield generation and simplified access, these products blur the line between decentralised finance and mainstream investing.

Hougan predicts that the BSOL model will inspire a new wave of staking ETFs tied to other proof-of-stake blockchains such as Cardano, Avalanche and Polkadot. “We’ve just opened the door to a whole new class of crypto investment products,” he said.

As Bitwise’s BSOL and Grayscale’s GSOL gather momentum, the message is clear: staking, once a niche DeFi strategy, has arrived on Wall Street. And for many institutional investors, Solana may have just provided the missing piece of the puzzle.