Bitwise Launches Solana Staking ETP in Europe with Ticker BSOL
Crypto asset manager Bitwise has launched a Solana staking ETP in Europe, ticker BSOL, with Marinade as the staking provider.
This launch follows Bitwise's plans to list a Solana ETF in the US by registering a statutory trust in Delaware. Developing SOL staking infrastructure may allow Bitwise to offer staking rewards for its US spot SOL ETF. Current US applications lack staking rewards due to securities law concerns, though speculation exists that this could change under new SEC leadership.
VanEck has also initiated a SOL staking partnership with Kiln recently.
Bitwise previously offered a European Solana ETP after acquiring London-based ETC Group and its ESOL product, which holds $24 million in assets under management. The decline from $27 million is likely due to ESOL's absence of staking rewards, which have been profitable for Solana investors. BSOL includes staking rewards.
Staking rewards derive from SOL issuance paid to validators for maintaining the blockchain. These rewards are passed to stakers, with an annual reward rate of around 8%, significantly higher than Ethereum's average staking APY.
Solana ETP issuers do not pay the full staking amount: 21Shares’ Solana ETP, Europe's fifth-largest crypto ETP, offers 5.49%. Bitwise will provide 6.48% using Marinade as its provider. Additionally, 21Shares charges a 2.5% management fee, while BSOL costs 0.85% annually.
Currently, US Solana ETFs do not include staking rewards, but this could change. Marinade hired Hadley Stern as chief commercial officer, possibly to prepare for institutional interest in Solana staking yield.
The future remains uncertain; however, if SEC leadership changes interpretations of staking rewards as non-securities, spot ETF issuers might re-file with these rewards included, leveraging their European ETP structure for US offerings.
Bloomberg ETF analyst Eric Balchunas predicts approval of SOL ETFs in the US will occur only after other cryptocurrencies like BTC and ETH receive regulatory clearance.