New Solana ETF Draws Strong Flows in Debut

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00:00As Eric said, this is a baby ETF. It only launched last week. Really impressive numbers for the first

00:05week, over $400 million in flows. Give us a little bit of color on where that's coming from,

00:11whether or not some of that was lined up ahead of time or whether this is truly new organic demand.

00:17Yeah, absolutely. It's great to be here. I love the word incredible. It's a fast-growing baby,

00:22and we think it's got a long way to run. It's a combination. There were certainly people who were

00:27anticipating the Solana ETF launching, and were ready to invest into BESOL. There's some reasonable

00:34amount of seed, but we've seen an enormous amount of organic demand. I just think Solana is one of

00:40the most appealing assets. It's a challenger asset that's relatively small that has the potential

00:46for really significant upside. I think it's retail investors, Solana lovers, financial advisors,

00:52and some hedge funds that are contributing to that $400 million in flows.

00:56And you have the first mover advantage as well. Why is that first mover advantage so important?

01:01And I ask this because I think of GBTC and how it was the first way for investors to get exposure to

01:07Bitcoin, but it didn't hold on to its lead when all the spot Bitcoin ETFs launched.

01:14Yeah, well, it's a combination. Of course, first mover advantage has always been important

01:18throughout ETF history. But what we did here was combine first mover advantage with a 20 basis point

01:25expense fee with 100% of our assets staked. And that's trying to cement that. So we hope that

01:31this is, you know, it's now the largest Solana ETP in the world. We hope that will continue to be the

01:36case. And it's really seeing dynamic trading as well as flows. So trying to cement that first mover

01:42advantage with the low cost expense ratio and the 100% staked rule.

01:46And now, Matt, give me the case for Solana. I consider it to be a competitor to Ethereum,

01:51uses proof of history. It's faster, but it has gone down. Ethereum has never gone down.

01:57How much of the stablecoin world will be on Solana versus Ethereum? And how else will Solana grow?

02:03What will make this go up, basically?

02:05Yeah, well, the beautiful thing about BESOL is you're getting two bets at once, Eric. You're getting

02:10a bet that tokenization and stablecoins will grow, right? Solana has a portion of that marketplace.

02:16It's certainly a challenger versus Ethereum, but it's a player. So if stablecoins and tokenization

02:21grow, BESOL should grow as well. The other bet you're making, though, is it will take a larger

02:26and larger chunk of market share. As you mentioned, it is faster than most other blockchains. It is

02:32easier to use than most other blockchains. It's winning an increasing share of institutional

02:36mandates. You know, just last week, we saw a major stablecoin announcement from Western Union. They

02:42chose to build on Solana. So it's really that combination of two bets at once that I find so

02:48attractive. If stablecoins and tokenization get bigger, BESOL does well. If Solana takes a bigger

02:54share of that market, BESOL does well. If they both happen, I think the upside is really substantial.

02:59So I hear what you're saying in terms of the logic for why Solana makes sense as a pitch. When it

03:05comes specifically to BESOL, I wonder who the audience is. Are you going after sort of the

03:10crypto native audience? Are you looking for folks who maybe sit in the traditional finance world who

03:16are just getting comfortable with some of these themes? Yeah, I think when you launch a new ETF

03:22in crypto, particularly for a single asset, you see an initial wave and then a long burn. The initial

03:29wave is crypto natives who want exposure in an ETP wrapper and hedge funds. That's probably what's

03:35driving the majority of flows over the first four days. The long burn is financial advisors who want

03:41diversified exposure to crypto. And we think that'll be the next billion dollars in assets. So

03:47when you're launching an ETF, you need to appeal to multiple audiences. I think of retail. I think

03:52of hedge funds. Those are first. And then the biggest audience eventually is those TradFi

03:57investors. But they take a while to show up. They'll trickle in over the next year or two.

04:02Matt, Bitcoin. Let's turn to Bitcoin real quick. It was up 300 percent since BlackRock had filed two

04:07years ago, but it has had a kind of shaky last couple of months. Some of the OG Bitcoiners are

04:13whining and upset. What do you say to them and other people? Why isn't Bitcoin up more given all

04:19this institutional adoption? Yeah, I mean, it is up a lot, right? It's up whatever, 150 percent since

04:26or 100 plus percent since the ETFs launched. It's doing just fine. I do think we're seeing

04:31some amount of selling around the $100,000 level, likely from people who bought Bitcoin when it was

04:36$10,000 or $1,000. We have to work through that sell wall. Once we do, I think we'll see substantial

04:43upside. Look, I think it shouldn't be surprising to anyone. $100,000 is a big round number. There were

04:49probably people who bought and wanted to sell there. We'll eventually get through it. I think

04:54in another six months, maybe another month, we're going to see another big uptick.

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