Solana News Today: SEC Delays Halt Crypto ETF Race as Bitwise Cuts Solana Fees to 0.20%

Bitwise Asset Management has announced the launch of its Solana Staking ETF, which will charge a 0.20% management fee, one of the lowest in the crypto exchange-traded fund (ETF) market. The firm's move underscores its strategy to undercut competitors and attract institutional and retail investors seeking exposure to Solana (SOL), a blockchain known for its scalability and low transaction costs. The proposed fee aligns with Bitwise's existing Bitcoin and Ethereum ETFs, which also charge 0.20%, signaling a consistent pricing model across digital asset classes.

The Solana Staking ETF aims to provide investors with access to staking rewards without requiring direct token management. Staking allows participants to earn yield by supporting network operations, a feature that analysts believe could enhance the fund's long-term appeal. If approved, the ETF would enable traditional investors to leverage Solana's staking opportunities through a regulated structure, potentially broadening institutional adoption of the asset class.

However, the regulatory landscape remains uncertain. The U.S. Securities and Exchange Commission (SEC) has delayed decisions on multiple crypto ETF applications, including Bitwise's Solana ETF, due to a government shutdown that began in October 2025. The SEC is operating with limited staff, freezing non-essential functions such as ETF reviews. Over 90 crypto ETFs, including altcoin-focused and multi-asset products, are currently awaiting approval. The shutdown has pushed back deadlines for key decisions, with Bitwise's Solana ETF now expected to receive a ruling by October 16.

Market competition is intensifying as firms innovate to differentiate their offerings. 21Shares, another major player, recently enhanced its Ethereum ETF by introducing staking and waiving sponsor fees for one year. This move mirrors Bitwise's strategy to reduce costs and integrate yield-generating features, reflecting a broader industry trend toward competitive pricing and product diversification. Analysts suggest that low fees are critical for attracting inflows, with Bitwise's 0.20% rate positioning it favorably against competitors charging 0.21% to 0.25%.

The regulatory environment remains a key determinant for the sector's growth. The SEC's updated listing standards, adopted in September 2025, aim to streamline approvals for crypto ETFs by treating them as commodity funds. However, the government shutdown has stalled progress, leaving the timeline for approvals in limbo. Legal experts estimate that delays could extend into late 2025 or early 2026 if the shutdown persists. Meanwhile, alternative structures, such as the Teucrium XRP ETF-which sidestepped SEC approval by holding Treasuries instead of crypto assets-highlight the sector's adaptability to regulatory constraints.

The potential approval of the Bitwise Solana Staking ETF could serve as a catalyst for broader institutional adoption of altcoins. Analysts project that early approvals could unlock $5–10 billion in inflows, with Solana's growing network and staking rewards making it an attractive asset. As the SEC navigates its regulatory role, the outcome of these applications will likely shape the trajectory of crypto ETFs in the U.S. market.

Source: [1] Theblock.co (https://www.theblock.co/post/373934/bitwise-not-playing-around-sets-0-20-fee-for-its-solana-staking-etf) [2] Cryptopolitan.com (https://www.cryptopolitan.com/bitwise-sets-0-20-fee-for-solana-staking-etf/) [3] Yahoo Finance (https://finance.yahoo.com/news/crypto-etfs-stuck-finish-line-083215402.html) [4] CoinCentral.com (https://coincentral.com/u-s-government-shutdown-may-delay-spot-crypto-etf-approvals-according-to-experts/) [5] Cryptoweekly.co (https://cryptoweekly.co/news/sec-etf-regulation-delay/) [6] Decrypt.co (https://decrypt.co/343490/bitwise-21shares-staking-fees-solana-ethereum-etf)