Bitwise Launches BSOL Solana Staking ETP in European Market
Bitwise has launched a Solana staking ETP, named BSOL, in the European Union. This initiative addresses regulatory challenges in the United States, where efforts to introduce a Solana ETF have stalled. The BSOL ETP promises staking rewards of up to 8% annually, providing an alternative to US-based ETFs, which cannot offer such returns due to securities laws.
This move follows Bitwise’s acquisition of a European ETP issuer in August, facilitating entry into the European market. By concentrating on Europe, Bitwise capitalizes on more favorable regulatory conditions for staking products. Other Solana staking ETPs, like VanEck’s offering, have also emerged in the EU, while similar products remain unavailable in the US due to regulatory barriers.
The BSOL ETP illustrates Bitwise's strategy to stand out: offering staking rewards differentiates it from US ETFs, which must exclude such features under current securities laws. Speculation exists that a shift in SEC leadership could allow US ETFs to incorporate staking features in the future.
Despite recent market corrections, Solana's price has shown relative strength compared to other cryptocurrencies. The launch of BSOL has yet to significantly impact Solana’s price, but the token maintains bullish trends, sustaining investor interest.
Bitwise’s focus on Europe raises questions about its long-term strategy. Continued restrictive US regulations may lead the firm to deepen its European presence. Conversely, a more crypto-friendly SEC could enable staking rewards and renew Bitwise's interest in launching a domestic Solana ETF.
Currently, BSOL presents an attractive option for European investors, granting access to Solana along with the potential for staking rewards. This decision reflects Bitwise’s adaptability and highlights the growing demand for staking products in regions with accommodating regulations.