Solana News Today: Bitwise's 0.20% Fee Staking ETF Targets Rivals in Competitive Crypto Market

Bitwise Asset Management's updated filing for a U.S. Solana (SOL) exchange-traded fund (ETF) has introduced a 0.20% annual fee and integrated staking functionality, positioning the product as a competitive entrant in the crypto ETF market. The proposal, submitted to the U.S. Securities and Exchange Commission (SEC) on October 8, includes a mechanism for the fund to earn network rewards by delegating stakes to validators, offering investors exposure to both Solana's price movements and staking yields Bitwise Staking in Solana ETF: What It Means for Solana Price^[1]. The low fee aligns with Bitwise's existing Bitcoin and Ethereum ETFs and is significantly lower than rival products, such as the REX-Osprey Solana Staking ETF (SSK), which charges 0.75% Bitwise Sets Low 0.20% Fee in New Solana ETF Filing - BitDegree.org^[2]. Analysts, including Eric Balchunas of Bloomberg, have highlighted the strategic advantage of early fee reduction, noting that low-cost structures historically attract strong investor inflows Bitwise Sets New Standard With Low Fee and Staking in Solana …^[3].

The filing also specifies a daily reference rate from CF Benchmarks for valuation, aiming to ensure transparency and alignment with market prices. The fund plans to list on Cboe BZX under the ticker BSOL, leveraging the exchange's infrastructure for digital-asset products. Bitwise's approach includes operational controls for validator selection, reward distribution, and liquidity management, addressing potential risks associated with staking Bitwise Staking in Solana ETF: What It Means for Solana Price^[1]. The firm's decision to waive the fee for the first three months on the initial $1 billion in assets further underscores its aggressive pricing strategy .

Market reactions to the filing have been positive. Solana's price rose approximately 4% in 24 hours, reaching $227.71, driven by optimism around the ETF's potential to attract institutional and retail capital. This surge coincided with a $6 billion institutional commitment from Helius, a Hong Kong-based digital asset treasury firm, which plans to acquire 5% of Solana's circulating supply . Analysts suggest that the combination of fee competition and institutional demand could accelerate capital flows into SOL, particularly if the SEC approves the ETF by mid-October, as predicted by Nate Geraci of ETF Trends Bitwise Sets New Standard With Low Fee and Staking in Solana …^[3].

The regulatory landscape remains a critical factor. While the SEC's recent delay in processing applications due to a government shutdown has created uncertainty, the approval of Bitcoin and Ethereum ETFs in 2024 has set a precedent for streamlined oversight. Bitwise's physical backing of the fund by Solana's spot assets-unlike futures-based alternatives-reduces tracking errors and enhances transparency Bitwise Sets Low 0.20% Fee in New Solana ETF Filing - BitDegree.org^[2]. Competitors like 21Shares have also introduced staking features and fee waivers, intensifying the market's evolution toward active yield generation Bitwise Sets New Standard With Low Fee and Staking in Solana …^[3].

Investors are monitoring key metrics, including validator concentration, liquidity depth, and distribution channels, which will influence the ETF's performance post-launch. The inclusion of staking rewards could enhance returns but introduces timing frictions during staked-to-liquid transitions. Analysts emphasize that efficient primary-market mechanics and robust custody infrastructure will be critical to maintaining tight bid-ask spreads and attracting long-term capital Bitwise Staking in Solana ETF: What It Means for Solana Price^[1].