- •Bitwise to launch Solana ETF, adding staking and slashing fees.
- •Management fee set at 0.20%, lowest among peer ETFs.
- •Solana’s price and network participation could experience significant increases.
Bitwise Asset Management is set to launch the Bitwise Solana ETF (BSOL) this week, pending SEC approval by October 16, introducing reduced management fees and staking capability.
The launch anticipates increased institutional participation, potentially boosting Solana's exposure and staking yield. Initial market reactions include a 4% increase in Solana's price following the announcement.
The Launch of Bitwise Solana ETF
The Bitwise Solana ETF (BSOL) is anticipated to launch this week, pending SEC approval by October 16. Recent amendments introduce a staking capability and a significantly reduced management fee, marking a unique entry in the ETF landscape.
Bitwise Asset Management, led by CEO Hunter Horsley, amends its ETF application. Notable partners include Chapman and Cutler LLP, Fenwick & West LLP, KPMG, and Coinbase Custody, supporting legal, tax, accounting, and staking endeavors.
Features and Pricing Strategy
The management fee is set at 0.20%, one of the lowest in the cryptocurrency ETF sphere. Initial three-month fees or the first $1B in assets are waived to boost inflows, enticing both institutional and retail investors significantly. James Seyffart, an analyst at Bloomberg, remarked, "This is more like they slashed fees right to their bottom level from the get go."
Staking feature integration means SOL held by the ETF will be staked, combining conventional exposure and on-chain yield opportunities for investors. Market observers project heightened institutional interest due to competitive fee structures and staking potential.
Market Impact and Historical Context
Solana’s price, around $230, increased by 4% following the ETF news. Historical Layer 1 ETF launches, such as those for Bitcoin, have triggered 15–30% price rallies, indicating potential upside for SOL should the ETF proceed.
Past trends reveal that similar ETF approvals saw increased institutional flows, exemplified by the $3B influx in BTC ETFs. Solana DeFi and Layer 1 altcoin tokens are likely to attract analogous attention should TVL surge.