Bitwise sets 0.20% fee for Solana staking ETF

Bitwise Asset Management announced its planned Solana staking exchange-traded fund (ETF) will charge a fee of 0.20%, in the latest salvo by the firm to undercut competitors and attract investor dollars.

The move comes as asset managers rush to secure U.S. Securities and Exchange Commission (SEC) approval for several crypto-based ETFs, amid a volatile regulatory environment.

Bitwise announced Wednesday that its upcoming Solana Staking ETF will carry a 0.20% management fee—significantly lower than many expected. Observers of the industry view this move as a well-thought-out one that will solidify Bitwise’s position ahead of other market participants in a business where being cost-effective is key to attracting fund inflows.

At 0.20%, the proposed fee would align Bitwise’s Solana ETF with its previous Bitcoin and Ethereum ETFs, which also charge approximately the same rate. This parity between digital asset classes suggests that Bitwise aims to create an investable vehicle for both institutional and retail investors in Solana, a fast-growing blockchain renowned for its scalability and low fees.

Should it be approved, the fund may create new avenues for traditional investors to access exposure to Solana’s staking rewards without having to manage the tokens themselves, according to analysts. Staking allows holders to earn yield by supporting blockchain network operations, a hallmark that may add to the longer-term appeal.

Market competition intensifies amid SEC delays

The filing, however, comes at a sensitive juncture. Last week’s government shutdown in the U.S. has put several normally functioning operations at the SEC on hold, pending decisions regarding certain ETFs. The agency’s contingency plan suggests that only a limited number of staff members are still available to address pressing issues, leaving firms with uncertainty about whether any approvals will be forthcoming.

This lag is beginning to have an impact on a growing list of applications, with more than two dozen crypto-related ETF proposals awaiting approval. Among these are products linked to assets including Dogecoin (DOGE), Litecoin (LTC) and Solana (SOL), indicating that traditional finance has an appetite for decentralized tech.

The overall ETF market has been heating up since the SEC sanctioned spot Bitcoin ETFs in early 2024, and then Ethereum ETFs a few months later. Those approvals, following a seminal court decision in favour of the Grayscale Investments fund, led to a shift in how regulators and supervision of digital assets is viewed in the U.S. If the Solana ETF is approved, it could be yet another step in that evolution.

In the meantime, 21Shares unveiled improvements to its 21Shares Ethereum ETF product, including the introduction of staking and a one-year waiver of the sponsor fee. The firm referred to the move as the natural evolution of Ethereum investment products in the U.S. market, providing investors with exposure to yield generation that leverages a regulated ETF structure.

Bitwise boosts its footprint in crypto finance

Bitwise’s low fee is the latest move in a series of strategic efforts that solidify Bitwise’s position as a leading industry player among crypto index providers and ETF managers. The firm, based in San Francisco, has been a vocal advocate for clear regulatory frameworks and user-friendly products that help bridge the gap between digital assets and traditional finance.

By charging one of the lowest fees among digital asset ETFs, Bitwise is betting on scale. This could be a successful play if more institutional investors, financial advisors and retail traders ultimately want broad crypto exposure when the SEC leaves the building.

Regulatory hurdles remain, but investors continue to be enthusiastic about the growth of Solana’s network and its staking opportunity. If approved, the Bitwise Solana Staking ETF would be a bellwether product for crypto-curious investors seeking to enter the market through traditional, regulated products.

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