Bitwise Launches Solana Staking ETP in Europe Amid US Regulatory Challenges

• On December 17, Bitwise made waves in Europe by launching its Solana-based crypto-staking exchange-traded product in collaboration with Marinade, a self-custodial automation tool. 
• This ETP, with the ticker BSOL, boasts an annual percentage yield of 6.48%, surpassing competing offerings from European firms like 21Shares, which provides a 5.49% yield.

Bitwise, a crypto asset management company, has launched a Solana staking exchange-traded product (ETP) in Europe. To achieve this, the firm partnered with Marinade as its staking provider, ensuring that BSOL delivers high yields, minimal ownership costs, and exceptional performance compared to other Solana staking options currently available.

Hunter Horsley, CEO and Co-Founder of Bitwise, stated that the company’s goal is to expand the range of products available to investors by offering trustworthy vehicles that harness the potential of cryptocurrencies. He highlighted Solana as an emerging star in the crypto landscape and expressed excitement over the introduction of BSOL as the third staking ETP launched this year, following the successful releases of their Ethereum and Aptos staking ETPs.

A Strategic Move to Capitalize on Growing Interest in Solana

BSOL marks Bitwise’s first Solana ETP in Europe, following the earlier debut of ESOL in August. The latter emerged as a product of the ETC Group acquisition, which currently manages $24 million in assets, a slight decline from $27 million a month prior. Bitwise has seen significant growth in 2024, recently crossing the $12 billion threshold in total client assets. 

The company aims to differentiate its Solana staking ETP from US-based exchange-traded funds by providing superior staking returns. Solana’s staking rewards are derived from the issuance of SOL tokens, which the network allocates to validators for their role in operating the blockchain. Validators, in turn, distribute these rewards to stakers, who actively compete for staked SOL tokens. According to Solana Compass, the average reward rate for stakers is around 8% annually.

The timing of Bitwise’s Solana ETP launch is particularly significant, occurring just less than a month after the company announced its intentions to pursue a Solana ETF in the U.S. by registering a statutory trust in Delaware, as we previously reported. As it stands, current US applications exclude staking rewards due to securities law concerns.

With Paul Atkins taking charge as SEC chair in January, staking rewards might not be classified as securities, potentially leading to spot ETF issuers re-filing with these rewards included. Firms could then utilize their European staking ETP infrastructure to offer similar products in the United States.

As we have reported, Solana’s recent performance has fallen short of Bitcoin and Ethereum, with SOL gaining only 1.61%, while Bitcoin and Ethereum have increased by 17.49% and 26.96%, respectively. Despite this, notable traders express optimism about Solana’s future, citing long-term indicators and historical patterns that suggest a potential for significant growth. Currently, Solana (SOL) is trading at $218, experiencing a decline of 1.42% over the past day.