Lightspeed exclusively learned that Bitwise, a crypto asset manager in Europe has released a ETP for solana staking with ticker BSOL. Marinade is Bitwise’s solana staking company.
This move is less than one month after Bitwise announced its intention to list an ETF for solana in the US. Bitwise did this by registering a Delaware statutory trust. Bitwise could be able to provide staking incentives for its US Spot SOL ETF if it decides to expand its SOL stake infrastructure. Staking incentives are currently not offered in US applications because of securities law concerns. But some people speculate this might change under the leadership of Paul Atkins.
VanEck, a US-based crypto assets manager, made a similar decision in the last few months. They formed a partnership for SOL stake with Kiln.
Bitwise offered the first European solana ETP with its acquisition of London-based ETC Group’s ESOL, which has $24 millions in assets currently under management. That is down from 27 million a few months ago. Investors are likely to be disappointed by ESOL’s lack of staking incentives, as these have proven quite profitable for investors in solana over the past few months. BSOL already has staking incentives built in.
Validators receive SOL as a reward for operating the blockchain software. Validators can then give these rewards on to other stakers so they compete for the staked SOL. According to Solana Compass, stakers receive a reward of around 8% per year. It is also more than twice the Ethereum average APY for stakers.
It is important to note that the solana ETP issuing companies do not pay out this entire amount. The fifth largest crypto ETP on the European market, 21Shares solana ETP pays 5.49%. Bitwise is paying 6.48% according to Blockworks’ document. Bitwise CEO Hunter Horsley also said that Marinade was its staking service provider. The 21Shares management fee is 2.5%, while BSOL costs investors 0.85%.
As they are currently structured, no US Solana ETFs include stake rewards. It is possible that this order will not hold. Bitwise’s Marinade staking provider hired Hadley Stern from New York to become its chief commercial office in September.
There’s no way to tell what the future will bring, but given that VanEck has added solana ETPs into their portfolios and Bitwise is adding them to its own, it seems plausible. Atkins takes over, SOL rewards for staking are not considered securities, ETF issuers file new documents with staking incentives attached and firms offer US-based products using their European ETP infrastructure.
It’s unlikely to happen anytime soon. Bloomberg ETF analyst Eric Balchunas told Bloomberg today that he expected SOL ETFs in the US to only be approved after BTC/ETH combination, Litecoin products, and HBAR all get the approval.
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