Solana News Today: Bitwise's Low-Fee Staking ETF Faces SEC Delays as Competition Heats Up

Bitwise Asset Management has submitted an amended filing for its Solana Staking ETF, proposing a 0.20% annual management fee-a rate that aligns with its existing Bitcoin and Ethereum ETFs-and incorporating staking capabilities to capture yield from the Solana blockchain. The move positions the firm to compete aggressively in the nascent crypto ETF market, where low fees and innovative features are critical to attracting institutional and retail investors. Analysts have highlighted the strategic significance of the 0.20% fee, noting that it aligns with historical trends where lower fees correlate with stronger investor inflows. Bloomberg ETF analyst Eric Balchunas described the rate as "unexpectedly aggressive," emphasizing that Bitwise's decision to undercut competitors early signals a tactical shift in the ETF landscape.

The proposed fund, which includes staking, allows investors to earn rewards from Solana's proof-of-stake mechanism without directly managing the tokens. Staking enables network participants to validate transactions and earn yields, a feature that has gained traction as a value-add for crypto ETFs. Bitwise's structure includes partnerships with Coinbase Custody and Attestant to manage staking operations, ensuring the fund's assets remain secure while generating passive income. This approach contrasts with existing products like the REX-Osprey Solana Staking ETF (SSK), which charges a 0.75% fee and has faced criticism for tracking discrepancies against the Solana spot price. Analysts argue that Bitwise's physical backing of assets and lower fees could enhance tracking accuracy and investor confidence.

The regulatory environment, however, remains a critical uncertainty. A U.S. government shutdown has delayed the SEC's review of crypto ETF applications, including those for Solana and Litecoin. The agency's contingency plan limits operations to "essential" functions, leaving over two dozen crypto ETF proposals in limbo. Bitwise's filing, submitted in November 2024, now faces prolonged approval timelines, with analysts previously projecting decisions by mid-October 2025. The delay complicates market dynamics, as issuers like 21Shares and Franklin Templeton also await regulatory clarity for their Solana ETFs.

Industry observers stress that the outcome of these applications will shape the broader adoption of altcoin ETFs. If approved, Bitwise's fund could serve as a blueprint for integrating staking into regulated investment vehicles, potentially expanding access to yield-generating strategies for traditional investors. Solana's market performance, which has seen a 6.11% gain over the past 30 days, further supports the case for institutional exposure. The blockchain's scalability and low transaction costs have positioned it as a key player in decentralized finance (DeFi), with $17.5 billion in total value locked as of July 2025.

Competitive pressures are intensifying as major asset managers vie for market share. BlackRock, the world's largest asset manager, has yet to file for a Solana ETF, drawing speculation about its strategic priorities. Analysts like James Seyffart caution that late entrants could disrupt the market if they leverage existing infrastructure without bearing initial regulatory costs. Meanwhile, Bitwise's aggressive pricing and staking integration underscore its ambition to dominate the space. The firm's alignment of fees across Bitcoin, Ethereum, and Solana ETFs also simplifies portfolio management for investors seeking diversified crypto exposure.

The regulatory and market uncertainties highlight the dual challenges facing crypto ETFs: navigating a complex approval process while competing on cost and innovation. Bitwise's updated filing reflects a calculated approach to both, but final outcomes will depend on the SEC's resumption of normal operations and investor sentiment. As the October 2025 deadline looms, the industry awaits a decision that could redefine the role of altcoins in mainstream finance.

Source: [1] Cryptopolitan (https://www.cryptopolitan.com/bitwise-sets-0-20-fee-for-solana-staking-etf/)

[2] Cointelegraph (https://cointelegraph.com/news/bitwise-not-playing-as-it-proposes-low-fee-for-its-solana-etf)

[3] Altsignals.io (https://altsignals.io/post/solana-etf-fees-bitwise-staking-competition)

[4] Financefeeds.com (https://financefeeds.com/everything-you-need-to-know-about-solana-etfs/)

[5] Coinotag (https://en.coinotag.com/bitwise-could-offer-solana-etf-with-staking-and-0-20-fee-as-analysts-note-intensifying-competition-sec-delays-possible/)

[6] Coindesk (https://www.coindesk.com/markets/2025/09/30/here-s-what-happens-to-solana-litecoin-etfs-if-the-u-s-shuts-down)