Report Date: October 9, 2025 Source: AIXBT MCP Top Projects
Bitwise advances Solana staking ETF with amended filing showing 0.20% management fee and BSOL ticker, while Bitcoin ETFs track toward record annual inflows exceeding $36B and the firm expands crypto ETF offerings with new option income products for CRCL and ETH.
Bitwise Investments has established itself as a leading institutional-grade crypto asset manager, recently making significant strides in the exchange-traded product (ETP) space with its Solana staking offering. The firm launched the Bitwise Solana Staking ETP (BSOL) on December 11, 2024, marking a strategic expansion of its European crypto investment product suite[1][2]. This launch positioned Bitwise to compete directly in the growing Solana staking market, which already included products from 21Shares, WisdomTree, and CoinShares[2].
The BSOL product represents Bitwise's third staking ETP launch of 2024, following their Ethereum and Aptos staking ETPs introduced in February and November respectively[1]. The product is structured as a fully backed ETP issued in Germany with a primary listing on Deutsche Börse XETRA, providing European institutional and retail investors with regulated access to staked SOL exposure[1]. The fund has accumulated EUR 101 million in assets under management within approximately ten months of operation, demonstrating solid initial market reception[2].
BSOL distinguishes itself through its benchmarking approach, being the only Solana staking ETP tracked against the Compass Solana Total Return Monthly Index (Bloomberg: SOLTRM, Reuters: .SLTRM)[1]. This provides investors with a transparent performance evaluation framework compared to competitors. The product carries a total expense ratio of 0.85% per annum, positioning it competitively within the mid-range of Solana staking products available in Europe[2].
Bitwise has experienced substantial growth, surpassing $12 billion in total client assets as of 2024[1]. This scale positions the firm among the top-tier crypto asset managers globally, providing significant operational advantages in terms of liquidity provision, regulatory compliance capabilities, and institutional credibility. The firm's European expansion accelerated through its August 2024 acquisition of ETC Group, a leading crypto asset manager that brought established products and market presence[1].
Within the European Solana staking ETP market, BSOL competes against several established players. The competitive landscape shows 21Shares Solana Staking ETP leading with €1.38 billion in assets under management, followed by WisdomTree Physical Solana at €544 million and CoinShares Physical Staked Solana at €535 million[2]. Bitwise's €101 million positions it as a meaningful but still-developing player in this specific product category, though the firm's overall crypto ETP portfolio is substantially larger.
Bitwise's European offerings extend beyond BSOL to include Europe's most liquid physically backed Bitcoin ETP (BTCE), launched in 2020, and the Bitwise Core Bitcoin ETP (BTC1) which features a competitive 0.20% annual fee, marketed as the lowest cost Bitcoin ETP available[1]. The firm also operates the Bitwise Ethereum Staking ETP (ET32), which has shown strong growth since its 2024 debut[1].
The BSOL product employs physical replication through a collateralized debt obligation structure backed by actual Solana holdings[2]. This approach contrasts with synthetic replication methods and provides investors with direct exposure to the underlying cryptocurrency. The staking mechanism is engineered to deliver what Bitwise describes as "significantly higher rewards compared to other Solana staking ETPs," though specific performance metrics relative to competitors would require ongoing tracking[1].
The product operates with an accumulating distribution policy, meaning staking rewards are automatically reinvested rather than distributed to investors[2]. This structure can provide tax efficiency in certain jurisdictions and simplifies the investment experience. The fund is denominated in USD but trades in both USD and EUR on XETRA, creating currency exposure that is unhedged[2].
As an ETN (Exchange Traded Note) rather than a UCITS-compliant ETF, BSOL operates under a different regulatory framework that provides certain structural flexibilities while potentially limiting access for some institutional mandates that require UCITS compliance[2]. The product does not engage in securities lending, which eliminates counterparty risk from that activity but also forgoes potential additional yield[2].
Bitwise's strategy centers on providing institutional-grade access to crypto assets through regulated, transparent vehicles. CEO and Co-Founder Hunter Horsley emphasized this approach, stating the firm continues "expanding our product suite to provide investors with access to the opportunities in crypto through high quality vehicles they can trust"[1]. The focus on Solana reflects the blockchain's technical positioning as a high-throughput platform capable of processing up to 65,000 transactions per second through its monolithic, single-layer architecture[1].
The firm's investment thesis on Solana emphasizes the blockchain's potential for widespread adoption as the "retail chain" given its speed, scalability, robust economics, thriving developer ecosystem, and proven stability[1]. This positioning aligns with broader market trends showing Solana's native token SOL ranking among the top cryptocurrencies globally[1].
Bitwise has signaled intentions to complete rebranding of its European crypto ETP portfolio while continuing to expand the platform with innovative, institutional-grade products[1]. This indicates an ongoing product development pipeline beyond the current offerings.
Cryptocurrency Volatility: Solana and the broader cryptocurrency market exhibit substantial price volatility, which directly impacts BSOL's performance. While the fund provides staking rewards that partially offset this volatility, these yields typically range from low-to-mid single digits annually and cannot eliminate market risk.
Competitive Fee Pressure: The 0.85% TER positions BSOL between premium offerings like 21Shares (2.50%) and lower-cost alternatives like WisdomTree Physical Solana (0.50%) and notably CoinShares Physical Staked Solana (0.00%)[2]. This mid-tier pricing requires the product to demonstrate superior staking efficiency or service quality to justify the cost differential.
Regulatory Evolution: As crypto ETPs continue to evolve, regulatory frameworks may change, potentially affecting product structures, tax treatment, or operational requirements. The ETN structure provides flexibility but lacks certain investor protections associated with UCITS-compliant products.
Staking Mechanism Risk: While staking provides additional returns, it introduces technical risks including validator performance variability, potential slashing events if validators misbehave, and the opportunity cost of locked capital during unstaking periods.
Currency Exposure: The unhedged USD denomination creates foreign exchange risk for EUR-based investors, adding another volatility dimension beyond the underlying cryptocurrency price movements[2].
BSOL targets investors seeking total return exposure to Solana, combining price appreciation potential with staking yield generation. The product is most suitable for institutional investors and sophisticated retail participants comfortable with cryptocurrency volatility and seeking regulated exposure vehicles. The physical backing structure provides transparency and direct ownership rights compared to synthetic alternatives.
The competitive positioning requires careful evaluation: investors prioritizing cost minimization might prefer WisdomTree or CoinShares offerings, while those valuing index-benchmarked performance evaluation and potential staking optimization may find BSOL's approach compelling. The €101 million in assets demonstrates adequate liquidity for most investors while remaining well below the scale of category leaders, which could affect bid-ask spreads during periods of market stress.
Bitwise's broader $12 billion asset base and established reputation in crypto asset management provide operational credibility and suggest the firm has resources to support product development and client service over the long term. However, the firm's relative position as a challenger rather than leader in the specific Solana staking category means BSOL must continue demonstrating competitive performance to gain market share.
Citations: [1] https://etfexpress.com/2024/12/19/bitwise-launches-solana-staking-etp-bsol/ [2] https://www.justetf.com/en/etf-profile.html?isin=DE000A4A59D2 [3] https://www.trackinsight.com/en/fund/BSOL [4] https://bitwiseinvestments.eu/products/bitwise-solana-staking-etp/ [5] https://www.boerse-frankfurt.de/en/etf/bitwise-solana-staking-etp/
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