Solana News Today: Bitwise's Fee Cut Turns Solana ETF Race into Terrordome Showdown

Bitwise Asset Management has intensified competition in the Solana ETF market by slashing its proposed fund's management fee to 0.20% annually, positioning itself as a front-runner in a rapidly evolving landscape. The firm's updated application for the "Bitwise Solana Staking ETF" includes a fee waiver for the first $1 billion in assets over the initial three months, a move analysts describe as a strategic preemptive strike to attract early investor inflows . This aggressive pricing mirrors the fee wars seen during the approval of U.S. spot Bitcoin ETFs in early 2024, with Bloomberg's Eric Balchunas calling it a "veteran Terrordome move" that leverages historical trends of low fees driving adoption . The fund's structure allows investors to earn staking rewards directly from Solana's network, enhancing returns without increasing risk .

The move has sparked a broader competitive shift among ETF issuers. Rival proposals, such as the REX-Osprey Solana Staking ETF (SSK), charge 0.75%, creating a stark contrast with Bitwise's ultra-low rate . Analysts predict this will trigger further fee reductions as issuers vie for market share, particularly as institutional demand accelerates. China Hong Kong-based Helius, a digital asset treasury firm, has announced plans to acquire at least 5% of Solana's circulating supply-valued at over $6 billion-once regulatory and market conditions align . This institutional push, coupled with Bitwise's fee strategy, has driven Solana's price up nearly 4% in 24 hours, outpacing the broader crypto market's 0.55% gain .

Technical indicators also support bullish momentum. Solana's price has reclaimed the 61.8% Fibonacci retracement level at $227.71, with the Relative Strength Index (RSI) at 54.37 and a positive MACD histogram signaling healthy momentum . However, trading volumes remain cautious, reflecting investor wariness ahead of the SEC's ETF decision on October 16 . The regulatory timeline remains uncertain due to the ongoing U.S. government shutdown, which has delayed SEC reviews. While Bitwise's filing is among the most advanced, final approval hinges on the commission's resumption of full operations .

The inclusion of staking in Solana ETFs marks a significant evolution in crypto fund design. By integrating network rewards, funds like Bitwise's can offer investors passive income while aligning with the low-fee trend. 21Shares recently expanded its Ethereum ETF to include staking, and Grayscale followed suit earlier this year . This shift reflects a broader industry move toward active participation in blockchain ecosystems, rather than passive price exposure. Institutional players, including Helius, are leveraging staking capabilities to build long-term treasuries, mirroring strategies that previously boosted Bitcoin-based assets in Japan .

Despite the competitive landscape, Bitwise's approach faces challenges. The SEC's scrutiny of staking mechanisms and regulatory complexities could delay approvals. Analysts like James Seyffart note that the commission may require additional time to evaluate staking's compliance with securities laws . Meanwhile, the influx of applications-over 92 crypto-linked ETF proposals are under review-suggests a crowded market. However, Bitwise's low fee and staking feature could secure a dominant position if approved first .

[1] Invezz (https://invezz.com/news/2025/10/09/solana-etf-fee-cuts-and-6b-bet-send-sol-price-into-overdrive/)

[2] CoinViews (https://www.coin-views.com/2025/10/bitwise-solana-etf-staking-filing-020.html)

[3] Hokanews (https://www.hokanews.com/2025/10/bitwise-solana-etf-adds-staking-rewards.html)

[4] Coinpaper (https://coinpaper.com/11502/bitwise-lowers-the-bar-for-fees-in-solana-staking-etf-race)