Update: December 12, 4:30 am UTC
This article has been updated to include comments from Bitwise’s chief investment officer, Matthew Hougan, regarding the firm’s outlook on Solana products.
In a move aimed at expanding its presence in the European market, crypto index fund manager Bitwise has launched a Solana staking exchange-traded product (ETP) in Europe. The new ETP is listed on the Frankfurt Stock Exchange’s Xetra trading venue with the stock ticker BSOL. Interestingly, this launch comes as the firm awaits registration approval for its Solana exchange-traded fund (ETF) offering in the United States.
Key Features of Bitwise Solana Staking ETP (BSOL)
As per a December 18 news release, Bitwise has listed its Solana (SOL)-based crypto-staking ETP on the Frankfurt Stock Exchange’s Xetra trading venue in partnership with Marinade, a self-custodial automation tool. Speaking to Cointelegraph, Matthew Hougan, chief investment officer of Bitwise Asset Management, explained that the Bitwise Solana Staking ETP (BSOL) is designed to deliver the best possible outcomes for investors looking to earn rewards from SOL staking in addition to getting exposure to price movements in SOL.
Competitive Advantage
The new ETP offers an annual percentage yield (APY) of 6.48% for stakers, outpacing its European competitors like 21Shares, which offers 5.49%. Hougan told Cointelegraph: "BSOL significantly outperforms competitor products in terms of providing the highest staking returns with the lowest cost of ownership."
Low Management Fees
In an attempt to compete with existing European players, BSOL’s management fee is set at a competitive 0.85%, significantly lower than 21Shares’ 2.5%. This move aims to make Bitwise’s product more appealing to investors.
US Regulatory Approval
Meanwhile, in November, Bitwise registered a statutory trust in Delaware for its proposed spot Solana ETF, which requires further regulatory filings with the US Securities and Exchange Commission (SEC). While the firm continues to await approval, VanEck’s head of digital asset research, Matthew Sigel, said the odds of a US-approved spot Solana ETF will be "overwhelmingly high" by the end of 2025.
Bitwise’s Solana ETP in Europe: A Gap Filled
Interestingly, Bitwise’s first Solana ETP in Europe, ESOL, debuted in August as a result of the ETC Group acquisition. BSOL aims to fill a major gap with ESOL’s lack of support for staking rewards by having the feature baked in. According to Hougan, ESOL faithfully tracks price movements in SOL but does not offer the added benefit of receiving additional yield through staking rewards.
On the other hand, BSOL adds additional value by providing not only the rewards of SOL staking to investors on a compounded and total return basis but also does so at a significantly lower cost of ownership and higher staking rewards than competitor products. Hougan told Cointelegraph that daily conversations with professional investors showed a rising interest in "a physical staking ETP for Solana." As a result, the firm expects the product to gather significant assets over time.
Solana’s Tokenomics
Hougan further explained: "Solana’s tokenomics are specifically designed to encourage staking, with the blockchain paying high rewards to stakers. BSOL lets investors participate in that opportunity with a push-button-easy ETP."
Bitwise Bullish on ETF Approvals in 2025
The acquisition added nine European-listed crypto ETPs to Bitwise’s portfolio and increased its assets under management to over $4.5 billion. The ESOL product currently holds $24 million in assets under management.
Positive Outlook for Crypto Industry
Related: Bitwise Files for 10 Crypto Index Fund ETF with the SEC
Bitwise’s Hougan and research head Ryan Rasmussen recently predicted that at least five "crypto unicorns" will go public in 2025, including stablecoin issuer Circle and crypto exchange Kraken.
Five strongest candidates for IPO listings in 2025. Source: Bitwise
Additionally, the Bitwise duo forecast that Bitcoin will hit $200,000 or more by the end of 2025 and said it could surpass gold’s current $18 trillion market cap by 2029.
Conclusion
Hougan believes in Solana’s potential as an important public blockchain. "Our mission at Bitwise is to help investors gain the best possible exposure to the most significant opportunities in crypto. BSOL does just that," he said.
In conclusion, Bitwise’s launch of BSOL marks a significant move into the European market and highlights the firm’s commitment to expanding its presence in the crypto space. With its competitive APY and low management fees, BSOL is poised to attract investors looking for a high-staking return on their investments. As the regulatory landscape continues to evolve, Bitwise remains bullish on the future of the crypto industry.
**What do you think about Bitwise’s launch of BSOL? Share your thoughts in the comments below!
