Solana News Today: Solana ETFs Clash: Bitwise's Zero-Fee Edge vs. Grayscale's Yield Play

The U.S. Solana (SOL) spot ETF market has seen a surge in investor interest, with Bitwise's Solana Staking ETF (BSOL) capturing $69.5 million in first-day inflows on October 28, nearly six times the $12 million raised by Rex-Osprey's SSK. The rapid adoption of these products reflects growing institutional and retail enthusiasm for Solana's high-throughput blockchain network, which offers competitive transaction speeds and staking yields, according to a Yahoo Finance report.

Reliance Global Group (Nasdaq: RELI) has further signaled confidence in Solana by adding the token to its digital asset reserves, joining existing holdings in Bitcoin, Ethereum, and other cryptocurrencies. The move aligns with the firm's strategy to enhance liquidity management and diversify risk through exposure to cost-efficient blockchain infrastructure, according to Cardanofeed. This follows broader industry trends as firms seek to capitalize on Solana's expanding ecosystem and on-chain revenue leadership.

Grayscale Investments entered the fray on October 29 with its Solana Trust ETF (GSOL), the first of its staking products to uplist under new SEC-approved standards, per a Yahoo Finance article. GSOL carries a 0.35% expense ratio and holds 525,387 SOL tokens, with 74.89% staked to generate network rewards. The fund, which intends to pass 77% of staking yields to investors, joins Bitwise's BSOL and Rex-Osprey's SSK as the third U.S.-listed Solana ETF. Meanwhile, BSOL has gained an early edge, staking 100% of its holdings in-house and waiving its 0.20% management fee for the first three months, according to a Seeking Alpha analysis.

The competitive landscape highlights stark differences in structure and cost. Bitwise's BSOL, with a 0.20% gross expense ratio, has attracted $288.9 million in assets under management (AUM), while Grayscale's GSOL trails at $102.7 million. Analysts note that BSOL's yield potential—estimated at 7.32%—and lower fees could make it a preferred choice for investors seeking passive income. Rex-Osprey's SSK, which blends direct Solana holdings with Swiss-listed staked ETPs, charges a 0.75% fee and has $413 million in AUM, as described in the Seeking Alpha piece.

Market reactions to these products have been mixed. While the ETF launches coincided with a 0.78% rise in Solana's price to $195.58, the token underperformed the broader crypto market. Volume for SOL was 44% below its seven-day average, suggesting muted conviction despite the ETF buzz, according to CoinDesk. Technical analysis indicates Solana is consolidating between $194 and $203, with buyers stepping in near $195 support levels.

The growing ETF ecosystem underscores Solana's emergence as a key player in institutional crypto portfolios. "Institutional investors love ETFs, and they love revenue," said Bitwise CIO Matt Hougan, noting Solana's leadership in on-chain revenue. Grayscale's Inkoo Kang echoed the sentiment, framing digital assets as essential for modern portfolios. However, the lack of regulatory safeguards for these funds—GSOL is not registered under the Investment Company Act of 1940—remains a cautionary note.

As the race for Solana ETF dominance intensifies, investors are closely watching how staking yields and fee structures evolve. With Bitwise's introductory fee waiver and Grayscale's aggressive pricing adjustments, the market's next moves could reshape the competitive landscape.