Bitwise Asset Management – a leading crypto asset manager, has announced that they’ll be launching a Solana Staking ETP under the ticker BSOL in Europe. This is part of the company’s strategy to take advantage of staking rewards for Solana investors as the US regulatory landscape changes.
The BSOL product is backed by Solana staking provider Marinade and is competitive with an annual reward rate of 6.48% – much higher than the competition in the European market.
BSOL ETP: Key Features for European Expansion
The Solana Staking ETP is a big part of Bitwise’s European push. The company acquired the ESOL product when it bought London-based ETC Group. However, it didn’t include staking rewards, which is the key to its performance. The assets under management for ESOL have dropped from $27 million to $24 million in a month.
In contrast, BSOL includes staking rewards in the product. This makes Bitwise competitive in Europe as Solana staking is hot. Solana staking rewards, incentivized by block validators, are currently yielding up to 8% a year – much higher than Ethereum’s average staking APY.
How Bitwise Compares with Competitors
Bitwise isn’t the only crypto asset manager that offers Solana staking products. Others, including VanEck and 21Shares, have launched similar products in Europe. Notably:
- VanEck SOL Staking Partnership: Established a partnership with Kiln for staking infrastructure.
- 21Shares Solana Staking ETP: Offers a 5.49% reward rate with a 2.5% management fee.
- Bitwise BSOL Staking ETP: Offers a 6.48% reward rate and a much lower 0.85% annual management fee.
Bitwise CEO Hunter Horsley emphasized the company’s commitment to offering value through competitive rewards and reduced fees.
US Market Challenges: Regulatory Issues
While the European Solana staking ETP market is hot, the US is still a regulatory mess. According to reports, currently, US-based Solana ETFs can’t include staking rewards due to regulatory issues with existing securities laws.
In November, however, reports say Bitwise filed to list a Solana ETF in the US, which means they will be building out staking infrastructure in the US. Analysts now think that with the recent appointment of Paul Atkins as SEC Chair, the US will become more crypto-friendly and possibly allow US-based ETFs to distribute staking rewards at some point.
ETF analyst Eric Balchunas, however, remains cautious, predicting that Solana ETFs in the US will only gain approval after Bitcoin, Ethereum, Litecoin, and HBAR products secure regulatory clearance.
The Broader Implications
Bitwise’s plan to build out a deep pool of Solana staking infrastructure in Europe could be the template for its future US offerings. If the regulatory environment changes, Bitwise and other asset managers can then use the European framework to launch staking-enabled ETFs in the US.
With Marinade onboarding experienced executives like Hadley Stern, Bitwise is ready for whatever regulatory changes come their way. They have made it clear they want to be in both the European and US markets.
Conclusion
Bitwise’s launch of the BSOL Solana Staking ETP is all about increasing demand in Europe and unmet demand in the US. With competitive rates and scalable infrastructure, Bitwise is positioning itself as one of the key players in the crypto asset management space.
Regulatory issues in the US aside, the global spread of Solana staking products looks to be a promising trajectory for the overall crypto market.
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FAQs
1. What are Solana staking rewards?
Solana staking rewards are the incentives paid to validators and stakers to support the SOL blockchain. These rewards are from SOL issuance and offer up to 8% annual yield. It’s a great option for investors.
2. How does Bitwise BSOL compare to other ETPs?
Bitwise BSOL is a competitive product with a 6.48% annual staking reward and 0.85% annual management fee, making it a competitive option to others like 21Shares Solana staking ETP, which has a 5.49% reward rate but 2.5% fee.
3. Why can’t US Solana ETFs include staking rewards?
Due to securities laws, US-based Solana ETFs can’t include staking rewards. The SEC needs more clarity before staking rewards can be added to these products.
4. Who is Marinade, and what do they do?
Marinade is a Solana staking solution provider that partnered with Bitwise for the BSOL product. They are one of the more robust staking infrastructures out there and recently brought on experienced executives to get ready for the increase in institutional interest in Solana staking.
