Bitwise Solana ETF: Low 0.20% Fee and Staking Features Drive Competitive Edge
Bitwise Asset Management has updated its Solana exchange-traded fund application with aggressive pricing and staking capabilities. The crypto index fund manager designated a 0.20% fee for its Solana staking ETF in an amended filing submitted to the Securities and Exchange Commission. This strategic move positions Bitwise competitively as multiple issuers race toward potential October approval.
The amendment represents a calculated approach to capturing market share in the emerging altcoin ETF sector. The filing introduces a 0.20% unitary management fee, a single charge covering all fund operating costs. This pricing structure aligns with Bitwise’s existing Bitcoin and Ethereum ETF fees, creating consistency across its digital asset product lineup.
Bitwise Solana ETF Staking Rewards Attract Institutional Capital
The filing introduces staking as a core feature, allowing the ETF to earn yield on its Solana holdings. This capability enables investors to generate passive income from their positions while maintaining exposure to SOL price movements. Staking rewards typically range between 5-7% annually on the Solana network, depending on validator performance and network conditions.
The staking mechanism creates a dual value proposition for potential investors. They gain regulated exposure to Solana through a traditional brokerage account while earning network rewards. This addresses a significant gap in current cryptocurrency investment products, where many institutional investors cannot directly stake assets due to custody restrictions.
Fee Waiver Strategy Targets Early Adopters
Bitwise will waive the fee for the first three months on the first $1 billion in assets. This promotional period eliminates management costs for early adopters and demonstrates confidence in the product’s ability to attract substantial capital. The waiver could prove decisive in building initial momentum against competing products.
The zero-fee period creates an attractive entry point for price-sensitive investors. Institutional allocators often evaluate ETF expenses carefully, as small differences compound significantly over multi-year holding periods. Bitwise’s temporary waiver may accelerate initial asset accumulation and establish early market leadership.
SEC Approval Timeline Remains Uncertain
According to industry sources, issuers are quietly gearing up for the SEC’s potential approval of SOL ETFs within days. Several have already submitted amended filings that include staking provisions and finalized fee structures, signaling readiness for a swift launch once the green light is given. The regulatory agency faces mounting pressure to process these applications after establishing generic listing standards for cryptocurrency ETFs.
The first final deadline for a spot Solana exchange-traded fund is October 10, though the SEC maintains discretion over approval timing. Market observers note the agency has approved similar structures for Bitcoin and Ethereum, potentially creating precedent for Solana products. However, regulatory scrutiny around Solana’s classification continues to generate uncertainty.
Competitive Landscape Intensifies
Bitwise faces competition from established players, including VanEck, 21Shares, and Grayscale. Amended Solana filings from VanEck, Bitwise, and 21Shares added staking and in-kind language with final windows opening in October 2025. Each issuer has incorporated similar features while differentiating in fee structures and operational details.
The convergence of filing amendments suggests coordination around expected regulatory preferences. Issuers appear confident that staking capabilities will receive SEC approval, despite initial uncertainty about how the agency would treat yield-generating mechanisms. This represents a significant evolution from earlier spot Bitcoin ETF approvals, which prohibited staking or lending.
Conclusion
Approval of staking-enabled Solana ETFs could channel substantial capital into the ecosystem. Institutional investors gain simplified access without managing private keys or validator relationships. This infrastructure reduces operational complexity while maintaining regulatory compliance.
The products may also legitimize Solana in traditional financial markets. ETF approval historically signals regulatory acceptance and reduces perceived investment risk. Combined with competitive fees and staking rewards, these factors could accelerate institutional adoption and price discovery.
