Leading asset manager Bitwise has launched a Solana staking exchange-traded product in Europe, raising optimism that such a product might enter the US soon.
Bitwise, a $10 billion asset manager, has debuted a Solana-focused investment product—with ticker BSOL—that allows staking services. Per reports, the ETP issuer will allow European users alternative exposure to the high-caliber crypto asset while offering staking rewards.
Notably, the milestone came in partnership with Marinade. The Solana staking firm will provide Bitwise with staking services, offering dual incentives to BSOL holders.
Bitwise Expands ETP Offerings
The Bitwise Solana Staking ETP will charge users a 0.85% management fee for the dual offering. Furthermore, the asset manager disclosed that it would pay BSOL holders a competitive 6.48% staking yield.
Notably, these parameters pose a competitive edge over other funds offering the same product. For instance, VanEck’s Solana staking ETP charges an annual fee of 2.5% and pays users 5.49% in staking retributions.
Meanwhile, Bitwise has an existing Solana ETP in Europe. The asset manager secured the offering by acquiring London-based ETC Group.
The Solana exchange-traded product trades with the ticker ESOL. Notably, the fund has accrued a net asset of $24 million, with the absence of staking services contributing to its lack of traction.
It bears mentioning that an exchange-traded product (ETP) differs from an exchange-traded fund (ETF). An ETF is a type of ETP, an investment vehicle that allows investors indirect exposure to the underlying asset and trades on a stock exchange.
Is the United States Next?
Meanwhile, Bitwise has filed for a Solana spot ETF in the US. The asset manager joined VanEck, 21 Shares, Grayscale, and Canary Capital as applicants for the investment product.
However, the application does not include staking services. Notably, none of the ETF filings in the US have included the offering due to regulatory unclarity.
The current SEC hierarchy views crypto staking services as offering securities to investors. It was on the premise that the Gary Gensler-led Wall Street regulator pursued legal actions against Ethereum.
Nonetheless, a change in the SEC hierarchy has sparked optimism that the staking clause will transition with the outgoing administration. The digital asset industry expects crypto-friendly incoming chair Paul Atkins to effect certain changes, and the standing rules on staking could be one of them.
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