SOL Bulls Gear Up as Solana Staking Gains Institutional Backing

• Solana bulls are poised for a massive run as Bitwise launches its Solana Staking ETP (BSOL), capitalizing on the network’s high throughput and low fees.
• As we enter Donald Trump’s administration in 2025, institutional interest in Solana continues to rise, fueled by an increase in Solana ETF filings.

Solana (SOL) is increasingly capturing the attention of institutional investors thanks to its innovative technology and robust performance metrics. The blockchain’s ability to handle more than 65,000 transactions per second at low fees has made it a compelling choice for entities seeking scalable solutions. The crypto asset management giant Bitwise took a bold step in the European crypto space with its new Solana staking ETP while American investors await the U.S. equivalent. As institutional backing increasingly flows into Solana staking, SOL bulls are gearing up for a significant rally, with the potential to double its all-time high of $260 in 2025.

The ETP with the ticker BSOL was officially listed on Germany’s Frankfurt Stock Exchange Xetra. BSOL features an innovative staking mechanism that offers much higher rewards than other Solana staking ETPs, further establishing Bitwise’s leadership in the rapidly expanding cryptocurrency market. This fully backed ETP aims to deliver superior performance and the lowest total cost of ownership in comparison to competing Solana staking products available today. Notably, its management fee is competitively low at 0.85%, less than that of many other alternatives. 

As the sole Solana Staking ETP evaluated against a specific staking index, the Compass Solana Total Return Monthly Index presents investors with a clear and transparent means of assessing performance. With its primary listing on Deutsche Börse XETRA, European investors now have access to a cost-effective, liquid, and transparent investment option for staked SOL exposure. 

Increasing Institutional Confidence in Solana

Back in September, Binance rolled out BNSOL, an advanced representation of staked SOL that integrates earned staking rewards in a format that is both tradable and transferable. In contrast to traditional staking methods, BNSOL grants users the autonomy to sell, transfer, or use their staked SOL as they see fit. Users can also transfer BNSOL to personal wallets, including the Binance Web3 Wallet, which allows them to utilize their assets outside Binance.

Recently, the program introduced MANTRA, which provides enhanced staking returns while ensuring liquidity for staked Solana tokens. 

This further positions Solana ahead of other altcoins, as it combines its robust staking opportunities with unmatched flexibility, attracting both new and existing investors to its ecosystem. Bitwise’s move to file for a Solana ETF aligns with those of other notable players, including 21Shares, Nashville-based asset manager Canary Capital, and VanEck, all seeking to capitalize on Solana’s rising prominence in the market.

In the final days of the year, the SOL network experienced significant stablecoin inflows, surpassing all other blockchains with over $454 million in the past week, according to Lookonchain. Network activity within the Solana ecosystem rose by 83%, driven by interest in meme coins and artificial intelligence projects, with tokens like DOGEN and BONK leading the way.

Additionally, SOL’s DeFi volumes surged alongside this increased market activity. As of now, SOL is priced at $190, marking a 1.39% daily decrease and carrying a market capitalization of $91 billion.