Crypto assset management firm, Bitwise has launched the Solana Staking ETP in Europe, with the stock ticker BSOL. As a part of this launch, Solana staking provider Marinade has been selected as the firm’s partner for staking services.
Bitwise’s Solana Staking ETP (BSOL) in Europe
Bitwise’s Solana Staking ETP launch in Europe, comes on the heels of Bitwise’s recent move to register a statutory trust in Delaware, indicating to list a Solana ETF in the U.S. Building a robust Solana staking infrastructure could position Bitwise to integrate staking rewards into its U.S. spot SOL ETF offering, which is something unexplored given the regulatory concerns under existing securities laws and might overturn once Paul Atkins-led SEC revises the norms. Bitwise’s move seems similar to how VanEck partnered with Kiln to support SOL staking for its products.
Bitwise’s venture into European solana ETPs began with its acquisition of the London-based ETC Group. The acquisition brought in an inheritance of the ESOL product, which now manages $24 million in assets, down from $27 million a month ago. Bitwise’s foray is an attempt to address the lack of staking rewards, which is a major drawback for ESOL investors. With SOL ETP in place, this can be a great opportunity for Solana holders.
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Solana’s staking rewards are sourced from SOL issuance, distributed by the network to validators running the blockchain. Validators then share these rewards with stakers to attract more staked SOL. According to Solana Compass, annual staking rewards for Solana stakers are nearly 8%, which is more than twice the average staking yield on Ethereum.
Notably, 21Shares’ Solana staking ETP offers a 5.49% yield and Bitwise’s BSOL is expected to provide a slightly higher yield rate of 6.48%. However, BSOL has a more competitive annual management fee of 0.85%, compared to 21Shares’ 2.5%.
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