The first wave of altcoin ETFs in the U.S. officially launched on October 27, marking a historic milestone as regulated crypto products expanded beyond Bitcoin and Ethereum. On their first trading day, ETFs based on Solana, Hedera, and Litecoin debuted under the tickers BSOL, HBR, and LTCC, collectively attaining an impressive trading volume of $65 million. Yet, contrary to expectations, the underlying tokens exhibited mixed price reactions.
Solana’s ETF by Bitwise led initial trading with $56 million in volume, the highest among ETFs launched this year. However, Solana’s spot price declined 3.65%, trading near $191 after briefly reaching $203. Technical data showed the Relative Strength Index (RSI) hovering around 45, signaling waning momentum and that the market had likely priced in the ETF beforehand. This price dip illustrated the classic “buy the rumor, sell the news” phenomenon, where investors quickly took profits post-listing.
In contrast, Hedera’s ETF experienced lower volume at $8 million but witnessed its token price surge by 4.9% to $0.193. The RSI climbed to 53, indicating growing optimism. The disparity between relatively modest ETF inflows and strong token price appreciation suggests retail investors and smaller funds are gravitating toward lower-capitalization Layer-1 projects like Hedera, attracted by staking yields and the potential for ETF capital inflows in the near term.
Litecoin’s ETF faced limited attention, registering about $1 million in first-day trades. Litecoin’s price dropped 3.3% to around $96 while the RSI remained weak near 43, reflecting low buying interest. This trend underscores Litecoin’s status as a “legacy” crypto asset lacking innovation to drive market momentum. Without liquidity improvement, the new ETF risks appealing mainly to specialized institutional investors rather than sparking broad market interest.
Overall, the price divergence among these altcoins suggests ETF listings alone do not guarantee immediate price surges. Investors have become more selective, favoring assets with strong network growth or rewarding staking opportunities, while others face short-term profit-taking pressure. Nevertheless, the successful launch of these three altcoin ETFs beyond BTC and ETH signals a maturing U.S. crypto market ready to expand altcoin investment options under clearer, more robust regulatory oversight.
Looking ahead, Solana’s price target mixes optimism with caution, aiming for $230–$290 after touching $200. This development captures the nuanced environment of regulatory acceptance, investor sentiment, and market dynamics shaping the next phase of altcoin adoption in regulated frameworks. This ETF expansion could pave the way for greater mainstream acceptance and diversification in cryptocurrency portfolios, signaling a significant evolution in the crypto investment landscape.
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