Bitwise has taken a step to position its Solana Staking ETF competitively by proposing a nominal annual fee of 0.20%. This move comes as the firm aims to attract investors in an increasingly competitive market for exchange-traded funds (ETFs).
Asset management expert Eric Balchunas commented, “Thought we’d see higher first, need war to get this low,” suggesting that the firm may be anticipating market pricing trends. Balchunas described Bitwise’s decision as a strategic maneuver within an expected competition framework.
The updated filing with the U.S. Securities and Exchange Commission adds a staking feature to the Solana (SOL) ETF, which situates its fee within the common range observed in similar crypto ETFs—typically between 0.15% and 0.25%.
“Low fees have a near-perfect record of attracting investors, so it’s a good sign for inflow potential,” Balchunas further elaborated.
Speculation on ETF Fees
In the lead-up to potential crypto ETF launches, industry stakeholders have been scrutinizing which companies will ultimately offer the lowest fees.
During the anticipation of the U.S. launch of spot Bitcoin ETFs in January 2024, VanEck notably waived all fees for their product, continuing this approach through January 2026 for up to $2.5 billion in assets managed. In contrast, the Grayscale Bitcoin Mini Trust has implemented a fee of 0.15%.
Moreover, an existing competitor in the Solana space, the REX-Osprey Solana Staking ETF, debuted with substantial inflows totaling $12 million but stands at a higher management fee of 0.75%.
Quiet from BlackRock on Solana ETF
Balchunas pointed out Bitwise’s offering offers competitive advantages like lower fees and a full backing by actual Solana assets, in contrast to the REX-Osprey option, which he claims has significant tracking issues.
Further speculation surrounds BlackRock, a leading asset manager, and its inactivity regarding a Solana ETF filing.
As the market evolves, experts like James Seyffart have remarked on the implications of any late entries by BlackRock into the Solana ETF race, emphasizing the foundational work already done by early entrants.
Analysts anticipate that multiple applications for Solana ETFs with staking features could gain approval soon, potentially by mid-October.
