Bitwise Launches Solana Staking ETP in Europe After Delayed US Approval

Table of Contents

Update: December 12, 4:30 am UTC

This article has been updated to include interview comments from Bitwise chief investment officer Matthew Hougan about the firm’s outlook on Solana products.

Crypto Index Fund Manager Enters Solana Market with Staking ETP

Bitwise Asset Management has launched a Solana staking exchange-traded product (ETP) in Europe, listing it on the Frankfurt Stock Exchange’s Xetra trading venue under the ticker symbol BSOL. The firm is awaiting registration approval for its Solana exchange-traded fund (ETF) offering in the United States.

Bitwise’s Solana Staking ETP: A Game-Changer for Investors

According to a December 18 news release, Bitwise has partnered with Marinade, a self-custodial automation tool, to list its Solana (SOL)-based crypto-staking ETP on Xetra. Speaking to Cointelegraph, Matthew Hougan, chief investment officer of Bitwise Asset Management, explained that the Bitwise Solana Staking ETP (BSOL) is designed to deliver the best possible outcomes for investors looking to earn rewards from SOL staking in addition to getting exposure to price movements in SOL.

Key Features and Benefits

The new ETP offers an annual percentage yield (APY) of 6.48% for stakers, outpacing its European competitors like 21Shares, which offers 5.49%. Hougan told Cointelegraph:

BSOL significantly outperforms competitor products in terms of providing the highest staking returns with the lowest cost of ownership.

Low Fees and Competitive Advantage

BSOL’s management fee is set at a competitive 0.85%, significantly lower than 21Shares’ 2.5%. This move by Bitwise aims to disrupt the existing European players in the Solana ETP market.

US ETF Registration: A Bright Future Ahead?

In November, Bitwise registered a statutory trust in Delaware for its proposed spot Solana ETF. While awaiting approval from the US Securities and Exchange Commission (SEC), VanEck’s head of digital asset research, Matthew Sigel, said the odds of a US-approved spot Solana ETF will be "overwhelmingly high" by the end of 2025.

Bitwise’s Expansion in the European Market

The launch of BSOL marks Bitwise’s second foray into the European market after its first Solana ETP, ESOL, debuted in August. The new product aims to fill a major gap left by ESOL, which does not support staking rewards. Hougan explained that ESOL faithfully tracks price movements in SOL but does not offer the added benefit of receiving additional yield through staking rewards.

BSOL: A Compounded and Total Return Basis

On the other hand, BSOL adds additional value by providing not only the rewards of SOL staking to investors on a compounded and total return basis but also does so at a significantly lower cost of ownership and higher staking rewards than competitor products. Hougan told Cointelegraph that daily conversations with professional investors showed a rising interest in "a physical staking ETP for Solana." As a result, the firm expects the product to gather significant assets over time.

Solana’s Tokenomics: Encouraging Staking

Hougan further explained:

Solana’s tokenomics are specifically designed to encourage staking, with the blockchain paying high rewards to stakers. BSOL lets investors participate in that opportunity with a push-button-easy ETP.

Bitwise Bullish on ETF Approvals in 2025

The acquisition of ETC Group added nine European-listed crypto ETPs to Bitwise’s portfolio and increased its assets under management to over $4.5 billion. The ESOL product currently holds $24 million in assets under management.

Magazine: 13 Christmas Gifts that Bitcoin and Crypto Degens Will Love

Explore more articles like this:

Subscribe to the Markets Outlook Newsletter: Get critical insights to spot investment opportunities, mitigate risks, and refine your trading strategies. Delivered every Monday.
Subscribe by clicking here (link)