The Solana ETF Race: Grayscale vs. Bitwise – Who Will Win Institutional Capital?

The Solana ecosystem has become a battleground for two of the most prominent players in crypto asset management: Grayscale and Bitwise. With the launch of the Bitwise Solana Staking ETF (BSOL) on October 28, 2025, and Grayscale's Solana Trust ETF (GSOL) debuting on NYSE Arca the following day, the race to capture institutional capital has intensified. Both products offer exposure to Solana (SOL), but their structural differences-particularly in fee structures, staking yields, and institutional appeal-will determine which ETF emerges as the preferred vehicle for institutional investors.

Structural Advantages: Fees, Staking, and Institutional Credibility

Bitwise's BSOL has positioned itself as a cost-competitive option, charging a 0.20% management fee, according to NullTX. This is significantly lower than Grayscale's 0.35% fee for GSOL, per Blockonomi. This 0.15% differential may seem small but could compound meaningfully for large institutional portfolios. Additionally, BSOL's staking mechanism has proven highly attractive: 82% of its holdings are staked, generating an estimated 7% annual yield, according to NullTX. By contrast, Grayscale's GSOL allocates 77% of staking rewards to its net asset value (NAV), according to Coinotag, but the exact yield percentage remains unspecified in public filings.

Grayscale, however, leverages its institutional credibility and scale. With $35 billion in assets under management, the firm's reputation as a trusted custodian and its compliance with SEC standards, according to Coinotag, may reassure risk-averse investors. GSOL also offers exchange-listed staking capabilities, a novel feature that aligns with Solana's high-performance blockchain (capable of 65,000 transactions per second), per Coinotag. This structural innovation could appeal to institutions seeking both liquidity and yield generation.

Early Inflow Performance: Bitwise's Explosive Start

The first week of trading revealed stark contrasts in market reception. Bitwise's BSOL generated $69.5 million in net inflows during its first 24 hours, per NullTX, propelling it to $289 million in AUM and the 16th-largest crypto ETF by assets, according to NullTX. This performance outpaced four Ethereum ETFs and two Bitcoin ETFs, underscoring Solana's growing institutional relevance. A week later, Solana-related products attracted $93.3 million in total inflows, according to Coin Republic, with BSOL retaining a significant share despite a slight slowdown.

Grayscale's GSOL, while not disclosing specific inflow figures, has secured a position as one of the largest Solana ETPs in the U.S.. Its launch on NYSE Arca-Grayscale's first staking product under new SEC guidelines-signals a strategic pivot to compete with spot Bitcoin ETFs, per Coinotag. However, without granular inflow data, it remains unclear whether GSOL has matched BSOL's momentum.

Broader Market Context: Solana's Institutional Momentum

The broader market environment also favors Solana. Despite a temporary slowdown in crypto fund inflows for both Solana and XRP in the week following BSOL's launch, according to Coin Republic, Solana's weekly inflows ($93.3 million) far exceeded XRP's ($61.6 million), per Coin Republic. This trend reflects growing confidence in Solana's blockchain infrastructure and its appeal to institutional investors seeking high-throughput, low-cost solutions, according to Coinotag.

Moreover, the anticipation of additional Solana ETFs-such as VanEck's pending product-has driven Solana's price up 3.62% weekly, as reported in the VanEck amendment, creating a self-reinforcing cycle of demand for exposure.

Who Will Win Institutional Capital?

The competition between Grayscale and Bitwise hinges on balancing cost efficiency, yield generation, and institutional trust. Bitwise's lower fee and transparent staking yield (7%), according to NullTX, give it a clear edge for cost-sensitive investors, while Grayscale's brand equity and staking innovation, per Coinotag, may attract those prioritizing compliance and operational expertise.

However, institutional capital often favors momentum. With BSOL's record-breaking debut and continued inflows, according to NullTX, Bitwise has demonstrated strong market traction. Grayscale, meanwhile, must leverage its scale and infrastructure to close the gap.

In the short term, Bitwise appears to hold the upper hand. Yet the long-term winner will depend on how effectively each firm adapts to evolving investor demands-particularly as more Solana ETFs enter the market.