Bitwise Advances Efforts to Launch Solana Staking ETF Amid Regulatory Delays

Bitwise Asset Management is forging ahead with its plan to list the Solana Staking ETF (BSOL), taking significant procedural steps despite delays caused by a recent U.S. government shutdown. According to a report by The Coin Republic on October 24, the company has filed an amended Form 8-A with the U.S. Securities and Exchange Commission (SEC). This revision follows a shift in the ETF’s listing venue from the Cboe BZX Exchange to NYSE Arca, signaling Bitwise’s readiness to bring the product to market. Industry observers believe this step is among the final requirements before BSOL can begin trading.

A Competitive Landscape for Solana ETFs

Bitwise is not alone in pursuing a Solana-based ETF offering. 21Shares is also making strides in this space with its 21Shares Solana ETF (VSOL), listed on the Cboe BZX Exchange. This ETF is particularly noteworthy for offering staking yields ranging between 6% and 7%, positioning itself as a groundbreaking product that provides investors with passive income through crypto staking. If approved, VSOL would become the first major cryptocurrency ETF to incorporate a staking yield mechanism, diversifying the investment options available to market participants.

However, approval timelines for altcoin-linked ETFs—including products tied to assets like Litecoin, Solana, XRP, and Dogecoin—have been hampered by delays stemming from the government shutdown. This has added an additional layer of complexity to the regulatory process.

Enhanced Features for the Solana Staking ETF

On October 8, Bitwise resubmitted its application for a Solana spot ETF, marking its fifth attempt to receive approval for a crypto-related ETF. The application now prominently includes 'staking' in the fund’s name, highlighting its focus on integrating staking yields as part of its investment strategy. Bitwise has also established a competitive fee structure, with a management fee set at just 0.20%, aimed at enhancing its appeal among institutional and retail investors. Bloomberg Senior ETF Analyst Eric Balchunas noted that this pricing is a deliberate strategy designed to draw investor attention in a highly competitive market.

To further incentivize early adoption, Bitwise announced a fee waiver during the fund’s first three months—or until its assets under management (AUM) reach $1 billion. Legal advisory for the initiative is being provided by Chapman and Cutler LLP alongside Fenwick & West LLP, with accounting services handled by KPMG. For staking services, Bitwise has partnered with Attestant as its primary provider, while Coinbase Custody acts as the staking custodian, ensuring secure management of assets.

Market Sentiment and Solana’s Price Movement

Amid regulatory developments and product innovation, Solana (SOL) itself has shown resilience in the cryptocurrency market. Over the past 24 hours, SOL saw a 4% rally, trading at $191.64 at the time of writing. Price fluctuations spanned from a low of $177.67 to a high of $192.42 during the same period, underscoring the coin’s volatility. However, trading volume dropped by 11% over the same timeframe, suggesting cautious investor behavior ahead of important macroeconomic data releases. Analysts point to Friday’s scheduled announcement of the Consumer Price Index (CPI) as a pivotal event influencing sentiment.

Optimism for Solana is growing in the derivatives market as well. Data from Coinglass highlights that Solana futures open interest climbed by over 2% in the last four hours, reaching $9.06 billion. Platforms such as CME, Binance, and OKX reported increases of 2%, 2.50%, and 4.50%, respectively, signaling robust bullish sentiment among derivatives traders. This uptick adds further evidence that investors are preparing for potential gains in the altcoin’s value.

The Implications of Solana-Based ETFs on Crypto Investment

The ongoing development of Solana ETFs, spearheaded by Bitwise and complemented by competitors like 21Shares, reflects a broader trend in cryptocurrency investment innovation. These products bring unique offerings—such as staking yields and low management fees—that aim to address investor concerns while navigating regulatory delays. In addition, Solana’s price movement and increased derivatives activity point to a sustained appetite for altcoin exposure, even amidst broader economic caution.

As regulatory clarity unfolds, the successful launch of these ETFs could reshape the crypto investment landscape, offering an accessible entry point for both institutional and retail participants. Bitwise’s calculated strategies, coupled with growing demand for diversified crypto-linked products, serve as key indicators of the sector’s maturity and potential for long-term growth.