Bitwise Launches Solana Staking ETP in Europe While Awaiting U.S. Approval

December 18, 2024 — Bitwise, a prominent crypto index fund manager, has launched a new Solana staking exchange-traded product (ETP) in Europe, marking a strategic move as it continues to await approval for its Solana exchange-traded fund (ETF) in the United States. The new product, with the ticker BSOL, was listed on the Frankfurt Stock Exchange’s Xetra trading venue, in collaboration with Marinade, a self-custodial automation tool for staking.

The Solana staking ETP is part of Bitwise’s ongoing efforts to expand its product offerings and provide competitive returns to European investors. The new ETP promises an attractive annual percentage yield (APY) of 6.48%, surpassing the yields offered by its European counterparts, including 21Shares, which offers an APY of 5.49%.

Competitive Edge: Low Fees and Attractive Rewards

One of the key selling points of the BSOL product is its low management fee, set at just 0.85%, which is significantly lower than the 2.5% fee charged by 21Shares for similar products. This fee structure positions Bitwise as a strong competitor in the European market, providing investors with a more cost-effective option for staking Solana compared to existing players.

“We’re excited to bring a competitive, high-yield product to the European market that also delivers a more efficient fee structure,” said Bitwise representatives in a statement. By lowering fees, the company aims to attract stakers seeking to maximize returns in a competitive market.

Waiting for U.S. Approval

While Bitwise moves forward with its European launch, the company is still awaiting approval from the U.S. Securities and Exchange Commission (SEC) for its proposed spot Solana ETF. In November, Bitwise filed for the ETF and registered a statutory trust in Delaware as part of the necessary steps to bring the product to the U.S. market. However, regulatory hurdles have delayed the approval process, leaving Bitwise to focus on its European operations for the time being.

Despite these delays, industry experts remain optimistic. Matthew Sigel, Head of Digital Asset Research at VanEck, has stated that the likelihood of U.S. approval for a spot Solana ETF by the end of 2025 is “overwhelmingly high.”

Filling Gaps in the Market

The launch of the BSOL ETP follows the debut of Bitwise’s first Solana ETP in Europe, ESOL, in August. ESOL was introduced following Bitwise’s acquisition of the ETC Group, but it lacked support for staking rewards. In contrast, BSOL directly addresses this gap by offering staking rewards as a built-in feature, a major benefit for Solana investors looking to earn additional income from their holdings.

Bitwise’s European Expansion and Future Outlook

The launch of BSOL is part of a broader strategy by Bitwise to expand its presence in the European market. In addition to the acquisition of the ETC Group and the introduction of new ETPs, Bitwise’s assets under management (AUM) have now surpassed $4.5 billion. The company’s growth is further evidenced by the $24 million in assets currently held in the ESOL product.

Looking ahead, Bitwise has strong predictions for the crypto sector, with investment chief Matt Hougan and research head Ryan Rasmussen forecasting that at least five “crypto unicorns” will go public by 2025, including major players like Circle, the issuer of the USDC stablecoin, and Kraken, the global crypto exchange.

In the same vein, Bitwise predicts that Bitcoin could hit $200,000 or more by the end of 2025, potentially surpassing gold’s $18 trillion market cap by 2029.

Conclusion

With the introduction of the BSOL Solana staking ETP, Bitwise is positioning itself as a leader in the European crypto market, offering competitive yields and lower fees than existing products. While awaiting regulatory approval for its Solana ETF in the U.S., the company’s expansion into Europe underscores its commitment to delivering innovative investment products in the evolving digital asset space. As the crypto market continues to mature, Bitwise remains bullish on the future of blockchain assets and their potential to reshape global finance.