Bitwise has announced the launch of a Solana staking ETP, called BSOL, in the European Union. This move comes as the firm faces significant regulatory challenges in the United States, where efforts to introduce a Solana ETF have been stalled. The BSOL ETP aims to attract investors with staking rewards of up to 8% annually, offering an appealing alternative to US-based ETFs, which are prohibited from providing such returns due to securities laws.
This decision follows Bitwise’s acquisition of a European ETP issuer in August, which has enabled a smoother entry into the European market. By focusing on Europe, Bitwise is tapping into a region with more favorable regulatory conditions for staking products. Recently, similar Solana staking ETPs have been introduced in the EU, such as VanEck’s offering. These products remain unavailable in the US, where regulatory restrictions have created significant hurdles.
The BSOL ETP highlights Bitwise's strategy to differentiate itself. The ability to offer staking rewards sets it apart from US ETFs, which are constrained by current securities laws. In the US, all ETF applications for Solana must exclude staking rewards. However, some experts speculate this could change under a different regulatory leadership at the SEC, potentially allowing US ETFs to integrate staking features in the future.
Solana’s price has recently faced some market corrections but has maintained relative strength compared to other cryptocurrencies. While the launch of BSOL has not yet had a noticeable impact on Solana’s price, the token continues to exhibit bullish trends, keeping investor interest alive.
Bitwise’s decision to prioritize Europe raises questions about its long-term strategy. If US regulations remain restrictive, the firm may deepen its focus on the European market. Alternatively, a more crypto-friendly SEC in the US could open the door for staking rewards and renew Bitwise's interest in launching a Solana ETF domestically.
For now, BSOL offers a compelling option for European investors, providing both access to Solana and the opportunity to earn staking rewards. This move not only reflects Bitwise’s adaptability but also underscores the growing appeal of staking products in jurisdictions with more accommodating regulations.
