Bitwise is launching a Solana staking ETP in the European Union. The firm’s efforts to secure a Solana ETF in the US have stalled recently, prompting this switch in tactics.
Bitwise is not the only firm offering Solana staking rewards in the EU, as these products are currently banned in the US. However, a change in regulation could overturn the company’s interest in the continent.
Bitwise to Launch Solana Staking ETP
Bitwise laid the groundwork for this move a few months ago when it acquired a European ETP issuer in August. Thanks to this head start, the firm seems ready to enter the EU market and its new regulatory apparatus. According to the latest reports, the firm will offer a Solana staking ETP in this market due to regulatory hassles in the US.
Bitwise has previously tried to launch a Solana ETF in the US, but the SEC has recently dashed these hopes. According to some recent analysis, a Solana ETF is less likely to win approval than a Litecoin ETF in this jurisdiction.
However, this staking ETP might offer a new alternative. VanEck recently offered a similar product with staking rewards in the European Union.
“Bitwise’s decision to build out its SOL staking infrastructure could also give it the capacity to offer staking rewards for its US spot SOL ETF. Current US applications all have staking rewards stripped out due to securities law concerns, but some are speculating that might change under a Paul Atkins-led SEC,” said popular crypto commentator Martin Folb.
This new ETP will trade under the name BSOL, and its staking returns will distinguish it from US ETFs. Due to US securities laws, ETFs and similar products cannot offer staking rewards, but Bitwise will have an opportunity to differentiate itself. According to Solana Compass, BSOL will offer a reward rate of around 8% annually.
Solana’s price has experienced corrections recently after enjoying the generalized crypto bull market in November. However, the asset’s price has managed to avoid a complete price rout, and SOL is still showing signs of bullish momentum. As of yet, this development from Bitwise has yet to noticeably impact Solana token prices.
Solana (SOL) Price Performance. Source: BeInCrypto
Overall, it’s difficult to suggest the company’s long-term plan for BSOL. On the one hand, if Bitwise continues to face regulatory setbacks in the US market, its new Solana offering could be the start of a deeper European commitment.
Alternately, a friendlier SEC could approve a SOL ETF or even allow staking rewards in the US. For now, the variables are still in the air.
