21Shares launched its Solana ETF, TSOL, on the Cboe with $100 million in assets under management, amid a pullback of the underlying token, which lost 14% the previous week. The launch combines exposure to the spot price of SOL with a staking mechanism intended to generate additional yield for institutional and retail investors. The debut arrives as investors assess resilient flows into Solana-focused funds and as U.S. regulators continue to review staking-related structures.
TSOL debuted with the explicit purpose of replicating the spot price of Solana in a regulated vehicle familiar to traditional managers. The issuer set the management fee at 21 basis points (0.21%), and the fund incorporates staking of its SOL holdings to offer an income stream complementary to capital appreciation. Staking is a process by which tokens of a network are delegated or locked to contribute to its security and operation in exchange for rewards; in this case, TSOL uses that mechanism to complement the fund’s performance.
The U.S. Securities and Exchange Commission has been reviewing proposals that incorporate staking, an aspect that requires additional regulatory considerations.
Flows, competition and regulatory framework
Despite the 14% drop in SOL’s price in the week prior to the debut, demand for Solana ETFs showed resilience: cumulative flows in the sector exceeded $420 million, and some reports noted total inflows of up to $2,000 million across funds dedicated to Solana. That volume reflects interest from investors who interpret the correction as a buying opportunity, even though some analysts described the moment as a period of “extreme fear”.
The competitive landscape already includes other issuers with similar structures and staking characteristics. Bitwise launched BSOL in October 2025 with approximately $500 million of AUM and an effective fee of 0.20% after waivers; Fidelity launched FSOL in November 2025 with a fee of 0.25% after waiver (initial AUM not available); and VanEck introduced VSOL in November 2025 with a fee of 0.30% after waiver (initial AUM not available).
The launch of TSOL amid a price correction and with significant capital inflows indicates appetite for regulated exposure to Solana via ETFs, especially when staking is added as a source of yield. The next reference to follow is the possible expanded approval of similar products before the end of 2025, a milestone that could further consolidate institutional supply around SOL.
