Should You Invest in New Crypto ETFs Before They Launch Tomorrow?
Three new crypto ETFs are starting to trade in the U.S. tomorrow. These funds cover Solana (SOL), Litecoin (LTC), and Hedera (HBAR). They let regular people invest in these coins without actually buying them. Think of it like owning a piece of gold through a fund instead of holding a gold bar in your hand.
This matters because it makes crypto simpler. You don’t need a special wallet. You don’t need to worry about keeping your coins safe. And you can buy these ETFs just like you buy stocks.
Which ETFs Are Launching
Bitwise is bringing out a Solana Staking ETF called BSOL. It will trade on the NYSE Arca exchange. Canary Capital is launching two ETFs on Nasdaq: one for Litecoin (LTCC) and one for Hedera (HBR). Bloomberg expert Eric Balchunas says these will start trading on October 28. Grayscale is also converting its Solana trust into an ETF on October 29.
This is big because the government approved spot Bitcoin ETFs back in January 2024. That opened the door for big companies like BlackRock and Fidelity to offer crypto funds. Now, smaller coins like Solana and Litecoin are getting the same treatment.
How Markets Responded
Prices moved a bit after the news came out:
- Solana went up slightly to $207
- Litecoin hit $101
- Hedera jumped 16% to about $0.21
These gains show that investors are interested. But they’re not going wild yet. The real test will come when trading starts.
Staking Makes Solana ETFs Different
Staking is a way to earn rewards by locking up your coins. It helps keep the blockchain network running. The Bitwise Solana ETF will include staking. So will Grayscale’s updated Solana Trust.
This is the first time U.S. investors can earn staking rewards through a regulated fund. The SEC said earlier this year that staking doesn’t automatically make something a security. That cleared the way for these products.
Thomas Uhm from Jito, a staking platform, said banks are already looking at ways to invest in staked Solana ETFs. That could bring in a lot of institutional money.
For regular investors, staking ETFs offer two things:
- Potential rewards from staking
- Exposure to Solana’s price movements
You get both without dealing with wallets or technical setup. It’s simpler and more secure than doing it yourself.
Litecoin and Hedera ETFs Take a Different Path
The Litecoin and Hedera funds don’t include staking. But they still matter. Canary Capital CEO Steven McClurg said these funds show growing interest in altcoins beyond Bitcoin and Ethereum.
Litecoin might appeal to people who want moderate risk. It’s been around since 2011 and has a solid track record. Hedera’s recent price jump could attract both speculators and bigger institutions looking for newer projects.
Both ETFs will trade on Nasdaq through an 8-A registration. That means you can buy and sell them just like regular stocks. This could help people build more balanced crypto portfolios without jumping through hoops.
Why This Launch Matters
These ETFs matter for three big reasons:
- Easier access: You can invest in popular altcoins through your regular brokerage account
- Regulated structure: These funds follow SEC rules, which adds a layer of protection
- Portfolio diversification: You can now mix Bitcoin and Ethereum with smaller coins in one portfolio
If these ETFs do well, we’ll probably see more altcoin funds. That could bring in big institutional investors who’ve been sitting on the sidelines. More institutional money usually means more stability and trust in the crypto market.
The fact that these funds are launching during a partial government shutdown shows how much momentum the crypto ETF market has. Approvals kept moving forward even with limited government operations.
For everyday investors, this is a chance to get exposure to coins that were harder to access before. You don’t need to learn about wallets, private keys, or blockchain technology. You just buy the ETF like you’d buy any other investment.
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