Solana News Today: Bitwise's Staking ETF Bridges DeFi and Traditional Markets, Elevating Solana's Role

Bitwise Asset Management has introduced the BSOL ETF, marking the first U.S.-listed exchange-traded fund to offer direct exposure to Solana (SOL) while integrating on-chain staking rewards, according to a Coinotag report. The product, which began trading on the New York Stock Exchange on October 28, 2025, targets an average annual yield exceeding 7% by staking 100% of its assets through Bitwise Onchain Solutions, powered by Helius Labs. This innovation bridges the gap between decentralized finance (DeFi) and traditional markets, positioning Solana as a key player in the evolving crypto ETF landscape.

The BSOL ETF stakes all held SOL tokens on the Solana network, generating staking rewards that are automatically reinvested into the fund. This structure allows investors to earn yields without the complexities of self-custody or direct staking, addressing a critical barrier for institutional adoption. Bitwise's approach leverages Helius Labs' infrastructure to ensure regulatory compliance and operational efficiency, as detailed in a CryptoNewsLand article. Rewards have historically averaged 6–8% annually based on network performance. The ETF's 0.20% management fee is competitive with Bitcoin and Ethereum ETFs, and the firm temporarily waived fees for the first three months or until the fund reaches $1 billion in assets, whichever comes first.

The product's debut was a resounding success, with $55.4 million in trading volume on its first day, Coinotag reported — surpassing all 2025 crypto ETF launches. This outperformed the $8 million and $1 million volumes of competing altcoin ETFs like Canary Capital's Hedera and Litecoin funds. Pre-launch, BSOL attracted $223 million in assets, signaling strong institutional confidence in Solana's staking mechanism. Analysts attribute the success to the ETF's unique yield-generating model, which differentiates it from traditional spot ETFs that lack passive income components.

Regulatory developments also played a pivotal role in the ETF's launch. Approved under the SEC's expedited 75-day review process—a significant reduction from the prior 240-day timeline—the BSOL cleared procedural hurdles swiftly, according to a CryptoTimes report. This regulatory shift reflects growing acceptance of crypto products, enabling firms like Bitwise to innovate within a structured framework. The ETF's structure, benchmarked to the Compass Solana Total Return Monthly Index, stores assets in institutional-grade cold storage, further enhancing security and transparency.

Market observers view the BSOL as a harbinger of broader trends in crypto ETFs. By integrating staking rewards, Bitwise has demonstrated how traditional finance can adopt blockchain-native features while maintaining compliance. The product's success could catalyze similar offerings, particularly as investors seek diversified yield opportunities amid a maturing crypto market.