Bitwise has made a strategic move by suggesting a remarkably low fee of 0.20% for its Solana Staking ETF, indicating a potentially aggressive stance against other market issuers.
According to ETF analyst Eric Balchunas, this rate may reflect the competitive nature of the ETF landscape:
“Thought we’d see higher first, need war to get this low.” Translation: We expected the fees to be initially higher; a competitive battle is needed to reach such low rates.
On Wednesday, Bitwise updated its application with the US Securities and Exchange Commission, incorporating staking into the proposed Solana (SOL) ETF, now accompanied by an annual management fee of just 0.20%, a rate that comfortably fits within the typical range for cryptocurrency ETFs, which is usually between 0.15% and 0.25%.
Balchunas noted:
“Low fees have a near-perfect record of attracting investors, so it’s a good sign for inflow potential.” Translation: Offering low fees typically draws in more investors, indicating a strong possibility for capital inflow.
Crypto ETF fee speculation has been around for some time The landscape leading up to crypto ETF launches has seen intense scrutiny regarding which issuers will offer the best rates. Competition intensified ahead of the introduction of spot Bitcoin (BTC) ETFs in January 2024, particularly when VanEck waived all fees, extending that waiver through January 2026 for assets up to $2.5 billion.
Conversely, Grayscale Bitcoin Mini Trust set its management fee at 0.15%.
On July 2, the first Solana staking ETF, the REX-Osprey Solana Staking ETF (SSK), concluded its first trading day with a notable $12 million in inflows, with an annual management cost of 0.75%.
In contrast, Balchunas highlighted that Bitwise’s proposal is cheaper, with superior tracking and full backing by Solana’s spot assets, stating:
“SSK is riddled with tracking issues like a futures ETF. It trails spot Solana by 12%—although it got better in the past month.”
Meanwhile, crypto commentator “Magoo PhD” echoed widespread curiosity about why the giant asset manager BlackRock has yet to file for a Solana ETF. ETF analyst James Seyffart expressed concerns that a last-minute filing from BlackRock would undermine the efforts made by other issuers who have labored to prepare their products for the market, calling it “messed up.”
Analyst Nate Geraci forecasted that several staking-related Solana ETF applications may receive US approval by mid-October.
