CoinShares submits S-1 form for Solana Staking ETF, experts warn of potential risks and complexities.

CoinShares is seeking to list a Solana Staking ETF on the Nasdaq, with a portion of its holdings staked through BitGo. Despite potential risks, the fund joins several similar filings, following the success of Ethereum ETFs with a total AUM of $27.5 billion. Solana funds currently have an AUM of $2.4 billion, but some analysts don't expect staking to substantially impact institutional demand.

CoinShares has submitted an S-1 form to the U.S. Securities and Exchange Commission (SEC) to list a Solana Staking ETF on the Nasdaq. The fund aims to combine SOL holdings with staking to generate yield, with BitGo serving as custodian and staking partner. This move follows recent filings by major asset managers such as BlackRock, Fidelity, Grayscale, and 21Shares, which are seeking to add staking to their existing Ethereum ETFs.

The CoinShares Solana Staking ETF will hold SOL tokens and stake a portion of its holdings to earn staking rewards. While the exact percentage of staked holdings is not specified, the fund acknowledges the potential risk of becoming unable to meet excessive redemption requests if they exceed the unstaked portion of SOL. This risk is due to the time it takes to unstake tokens, which can take from hours to several days, compared to the one-day settlement period for ETF redemptions.

Despite the potential risks, the Solana ETF market is gaining traction. The Rex-Osprey Solana + Staking ETF, which launched last month, attracted $12 million in first-day inflows and currently has assets under management of $137 million. Solana-based funds now have a total AUM of $2.4 billion, which is 8.7% of the equivalent total for Ethereum funds. However, Solana's market cap is approximately 20% of Ethereum's, indicating significant growth potential.

Some analysts, like Bryan Armour of Morningstar, do not expect staking alone to substantially change institutional demand for Solana ETFs. He believes that while staking improves ETF efficiency by capturing yield, the main driver of performance will be the underlying cryptocurrency's price. However, James Harris, CEO of DeFi platform Tesseract, sees staking as an added draw for institutional investors who seek yield without the operational complexity of direct staking.

The filing of the CoinShares Solana Staking ETF marks a significant step in the evolution of yield-focused crypto funds. As institutional interest in crypto continues to grow, staking ETFs are poised to simplify access to protocol-native yields. However, redemption risks require careful oversight to ensure the smooth operation of these funds.

References:

[1] https://cryptonews.net/news/altcoins/31375556/
[2] https://en.coinotag.com/coinshares-files-for-solana-staking-etf-amid-growing-interest-and-redemption-risk-considerations/
[3] https://www.coindesk.com/markets/2025/08/05/solana-treasury-company-upexi-surpasses-2m-in-sol-holdings