Bitwise to launch first-spot Solana ETF on NYSE

Bitwise Asset Management is re-entering the crypto ETF market with the launch of the Bitwise Solana Staking ETF (BSOL), which it claims is the first U.S. exchange-traded product to offer 100% direct exposure to spot Solana (SOL).

The ETF is set to trade on Tuesday on the New York Stock Exchange (NYSE), marking a significant milestone for Solana, the sixth-largest cryptocurrency by market capitalization. Bitwise confirmed news of the launch on X on Monday, calling it a “historic step” in bringing Solana into mainstream investment portfolios.

BSOL will not only own Solana tokens directly but also stake them on-chain to earn extra yield from network rewards, the firm said. Bitwise anticipates that staking returns will yield approximately 7% per year, and rewards are automatically reinvested into the fund to enhance performance.

Staking will be managed by Bitwise’s infrastructure partner Helius Technologies for reliability and regulatory compliance, according to the firm. The management fee of the ETF is 0.20%. However, Bitwise has stated that it will temporarily waive fees for an initial three-month period or until the fund reaches $1 billion in assets under management, whichever comes first.

Analysts say BSOL’s fee structure and built-in staking feature could attract both institutional and retail investors seeking exposure to Solana’s ecosystem without the complexities of self-custody or the cumbersome process of staking directly.

The launch is a game changer for digital finance, said Kristin Smith, president of the Solana Policy Institute.

U.S. shutdown amplifies crypto ETP wave

The launch of BSOL has arrived just as a new group of crypto-focused ETFs has begun to flood the U.S. market. Canary is also expected to list its Litecoin (LTC) and Hedera (HBAR) ETFs on Nasdaq on the same day, with the Grayscale Solana Trust ETF set to go live later in the week, according to reliable sources.

The launches occur as a U.S. government shutdown drags on, which means the Securities and Exchange Commission (SEC) remains operational but with reduced staffing. Typically, the SEC’s staff vets and approves ETF filings, but under the shutdown plan, most are put on hold.

Yet, the companies have managed to find legal means to move forward despite these limitations. Asset managers can file an S-1 registration statement without a delaying amendment, according to recent SEC guidance issued earlier this month, and their registration becomes effective automatically 20 days later.

Due to this process, crypto ETF issuers such as Bitwise and Canary Capital have been able to move forward with their listings, even when the SEC was operating at a limited capacity.

Pre-shutdown, the SEC had signed off on new listing standards to cover commodity-based trust shares across three large exchanges, a decision that basically paved the way for crypto ETFs. 

Investors position for Solana’s next growth wave

The Bitwise Solana Staking ETF  is more than just another crypto investment vehicle; it’s a bridge between decentralized finance and Wall Street. By incorporating staking into a regulated ETF wrapper, Bitwise is combining passive income streams with institutional-level access.

So that investors can participate in Solana’s growth trajectory and yield potential without getting lost in the complexities of private key management or interacting directly with on-chain staking. It also paves the way for large institutions, which are typically held at arm’s length by compliance hurdles, to hold or stake cryptocurrencies directly.

Solana has increased by more than 40% in the past month, driven by rising on-chain activity, a growing developer ecosystem, and increasing institutional demand. Analysts believe the BSOL launch contributes to the legitimacy of Solana as a top-tier blockchain network, particularly with the adoption of ETFs ramping up.

Industry specialists say that Bitwise’s move could provide the catalyst for a wave of single-asset crypto ETF launches, similar to how Bitcoin and Ethereum ETFs changed the digital-asset investment landscape earlier in 2021.

As the crypto ETF environment continues to grow, issuers will find themselves even more competitive. Cheapness, stakeholder yield, and liquidity will determine what products capture investor attention.

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