Bitwise Launches Solana Staking ETP in Europe: What This Means for Crypto Investors

In an ambitious move to expand its crypto exchange-traded product (ETP) offerings, Bitwise has launched a new Solana staking ETP in Europe under the ticker BSOL. This development is part of Bitwise’s broader strategy to strengthen its foothold in the European market while it continues to await U.S. regulatory approval for its Solana exchange-traded fund (ETF). With a competitive annual percentage yield (APY) and a lower management fee than some of its competitors, BSOL is poised to attract interest from European investors seeking exposure to Solana’s growing ecosystem.

BSOL ETP: High Yields and Low Fees

The launch of BSOL on December 17 promises an appealing return for investors. The product offers a 6.48% APY, significantly outperforming similar offerings in the market, including 21Shares’ Solana staking ETP, which provides just a 5.49% APY. This higher yield, combined with a management fee of only 0.85%, gives Bitwise a competitive edge, especially when compared to 21Shares’ fee of 2.5%.

The ETP was developed in partnership with Marinade, a self-custodial automation tool, and includes Solana’s staking rewards—something the previously launched ESOL product lacked. This feature ensures that investors can benefit from Solana’s staking opportunities while maintaining exposure to the potential price appreciation of the underlying asset.

Hunter Horsley, CEO and Co-Founder at Bitwise, highlighted the importance of Solana’s role in the crypto space, saying, “Solana is one of the rising star assets in the space, and we’re thrilled to be launching BSOL, the third staking ETP we are launching this year, after the Ethereum and Aptos staking ETPs in February and November respectively.”

Bitwise’s European Expansion and U.S. ETF Plans

The launch of BSOL is just the latest step in Bitwise’s aggressive push to expand its crypto ETP offerings in Europe. This move follows the firm’s acquisition of nine European-listed crypto ETPs from the ETC Group, which included the ESOL Solana-based product introduced in August. However, unlike ESOL, which does not offer staking rewards, BSOL aims to address this gap, providing a more comprehensive product for Solana investors.

Despite its success in Europe, Bitwise is still working on obtaining U.S. regulatory approval for a Solana spot ETF. In November, the firm registered a statutory trust in Delaware as part of its preparations to file with the U.S. Securities and Exchange Commission (SEC). Industry experts remain optimistic about the potential approval of a U.S.-based Solana ETF, with some predicting it could happen by the end of 2025.

As Bitwise pushes forward, the firm is also expanding its crypto ETP portfolio, which now totals over $4.5 billion in assets under management. This includes the ESOL product, which currently holds around $24 million in assets. The firm’s commitment to growing its offerings is evident, with other products like the Bitcoin ETF and Ethereum staking ETP positioning it as one of the largest players in the crypto ETP space.

Solana: A Rising Star in the Crypto Ecosystem

One of the key reasons behind Bitwise’s focus on Solana is the blockchain’s growing appeal. Solana’s ecosystem has been gaining traction, particularly among developers. A recent report by Electric Capital revealed that, for the first time since 2016, Solana has attracted more new developers than Ethereum. As of July 2024, Solana onboarded 7,625 developers, compared to Ethereum’s 6,456. This surge in developer interest signals strong growth potential for the Solana blockchain, which is increasingly seen as a rival to Ethereum in the world of decentralized applications (DApps).

This shift is mirrored by institutional investment in Solana-based projects. In Q3 2024, Solana’s DApps attracted $173 million across 29 funding rounds. This rebound in funding suggests that Solana’s decentralized applications are becoming a more attractive investment, further fueling the ecosystem’s rapid development.

The Road Ahead for Solana and Bitwise

Bitwise’s launch of the BSOL staking ETP is a strong bet on the future of Solana. By offering higher yields and lower fees than competitors, the firm is positioning itself to capture a significant portion of the growing interest in Solana-based investments. Moreover, as Solana continues to outpace Ethereum in terms of developer growth and institutional investment, Bitwise’s strategic focus on the blockchain seems to be paying off.

As the firm continues to push for U.S. regulatory approval for a Solana spot ETF, the future of Solana-based products looks bright. The potential approval of a U.S.-based Solana ETF could serve as a catalyst for further adoption and investment in Solana’s growing ecosystem.

For now, Bitwise’s BSOL ETP offers European investors an opportunity to benefit from Solana’s potential, both in terms of staking rewards and price appreciation. As the crypto landscape evolves, BSOL could become a key player in the growing space of blockchain-focused exchange-traded products.