Bitwise's BSOL ETP offers 6.48% APY and 0.85% fees, outperforming European competitors like 21Shares.
Bitwise anticipates US Solana ETF approval by 2025, following Delaware registration for its spot Solana ETF.
BSOL integrates staking rewards, filling gaps in European markets and expanding Bitwise's $4.5B portfolio.
Bitwise, a leading crypto index fund manager, has launched its Solana staking exchange-traded product (ETP) in Europe. The product, listed under the ticker BSOL, is available on the Frankfurt Stock Exchange’s Xetra trading platform. Bitwise collaborated with Marinade, a self-custodial automation tool, to enable the staking functionality.
The BSOL ETP provides an annual percentage yield (APY) of 6.48%, which is higher than its European competitor 21Shares’ 5.49%. Bitwise set the management fee for BSOL at 0.85%, significantly undercutting 21Shares’ 2.5% fee. These features position Bitwise as a strong competitor in the European market.
Efforts Toward US ETF Approval
In November, Bitwise registered a statutory trust in Delaware to pursue its proposed spot Solana ETF. The company must complete further regulatory filings with the US Securities and Exchange Commission. Bitwise continues to await regulatory approval for this offering. Industry experts, such as Matthew Sigel of VanEck, predict a high likelihood of US approval for Solana ETFs by the end of 2025. Bitwise remains optimistic about introducing this product in the United States.
Furthermore, Bitwise strengthened its European presence through the acquisition of ETC Group in August. This acquisition added nine European-listed crypto ETPs to its portfolio and increased its assets under management to over $4.5 billion. The ESOL product, introduced in August, currently holds $24 million in assets under management. Unlike BSOL, ESOL does not support staking rewards.
Market Predictions and Growth
Bitwise executives Matt Hougan and Ryan Rasmussen recently outlined their projections for the cryptocurrency market. Currently they anticipate five crypto unicorns. These include Circle, focused on stablecoins, or Kraken, an established crypto exchange, to IPO by 2025. They also believe that the price of Bitcoin will increase to $200, 000 by December 2025. Furthermore, they predict that the Bitcoin market capitalization could take over gold at $18 trillion by 2029.
The BSOL ETP addresses a gap in the market by integrating staking rewards, unlike ESOL. This feature highlights Bitwise’s efforts to diversify its offerings and meet investor demand for yield-generating crypto products. The acquisition of BSOL places Bitwise at par to effectively compete in Europe with the foundation of future expansion to the United States.
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