Bitwise Asset Management has launched a Solana staking exchange-traded product (ETP) called BSOL in Europe.
Bitwise Asset Management has launched a Solana staking exchange-traded product (ETP) called BSOL in Europe, trading on Germany’s Deutsche Börse and the Frankfurt Stock Exchange’s Xetra platform. The product offers a 6.48% annual percentage yield (APY), surpassing competitors like 21Shares, which offers 5.49%. With a low management fee of 0.85%, BSOL is positioned as a cost-effective option for investors. Developed in collaboration with staking provider Marinade, BSOL allows investors to earn staking rewards while providing exposure to Solana’s blockchain network.
This is Bitwise's second Solana-based ETP in Europe, following ESOL, which launched in August. Unlike BSOL, ESOL does not include staking rewards. ESOL was introduced after Bitwise acquired the ETC Group, adding nine European-listed crypto ETPs to its portfolio and bringing its total assets under management to over $4.5 billion. The ESOL product currently holds $24 million in assets, down from $27 million a month ago.
In the U.S., Bitwise is pursuing approval for a spot Solana ETF, having registered a statutory trust in Delaware in November. However, regulatory challenges remain, particularly concerning the U.S. Securities and Exchange Commission (SEC) classifying staking rewards as securities. Despite these obstacles, analysts are optimistic about future approvals, especially with Paul Atkins set to assume the role of SEC chair in January 2025. Analysts, including VanEck’s Matthew Sigel, predict U.S. approval of spot Solana ETFs by late 2025.
Solana, known for its fast and low-cost transactions, is gaining popularity for applications like decentralized finance (DeFi), gaming, and meme coins. However, its market performance has lagged behind other major cryptocurrencies like Bitcoin and Ethereum. While Bitcoin and Ethereum have seen gains of 17.49% and 26.96%, respectively, Solana has risen only 1.61%, trading at $218. The network’s staking rewards come from SOL token issuance, which is distributed to validators and stakers, with an average annual reward rate of 8%.
Bitwise executives predict strong growth in the crypto market over the next few years. They foresee Bitcoin reaching $200,000 by 2025 and expect several major crypto companies, including Circle and Kraken, to go public. The company remains committed to expanding its offerings in both Europe and the U.S., positioning BSOL as a strategic product to meet the growing demand for staking-based investments.
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