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    Solana ETF Analyst Stunned by Low Bitwise Fees

    Ethan CarterBy No Comments3 Mins Read
    1759996152

    Bitwise, the asset manager, has decided to set a 0.20% fee on its revised US-based Solana ETF application, which now incorporates staking. This move might indicate increasing competition among ETF issuers, according to ETF analyst Eric Balchunas.

    “I anticipated higher fees initially; it requires a competitive landscape to reach this level,” Balchunas stated in a post on X on Wednesday. “They probably realized it would end up here eventually, so why not set it now? It’s a classic veteran move,” he added.

    Bitwise updated its filing with the US Securities and Exchange Commission on Wednesday, revising the proposed Solana (SOL) ETF to include an annual management fee of 0.20% along with the staking feature. This fee positions it within the typical range for most crypto ETFs, which generally span from 0.15% to 0.25%.

    “Lower fees have a strong track record for drawing in investors, indicating positive inflow potential,” Balchunas commented.

    Speculation Surrounding Crypto ETF Fees

    As the market anticipates potential crypto ETF launches, there has been significant focus on which issuers would offer the most competitive fees.

    United States, Solana, ETF
    Solana has increased by 6.11% over the last 30 days, trading at $227 at the time of publication. Source: CoinMarketCap

    Competition intensified ahead of the US launch of spot Bitcoin (BTC) ETFs in January 2024, as asset manager VanEck waived all fees and extended this waiver through January 2026 for assets under management up to $2.5 billion. Meanwhile, Grayscale Bitcoin Mini Trust (BTC) established an annual sponsor fee of 0.15%.

    On July 2, the debut of the US’s first Solana staking ETF, the REX-Osprey Solana Staking ETF (SSK), ended its initial trading day with $12 million in inflows. The annual management fee for SSK is set at 0.75%.

    BlackRock Remains Silent on Solana ETF

    Balchunas noted that Bitwise’s proposed offering is more cost-effective, has superior tracking, and is fully backed by Solana’s spot assets. “SSK encounters tracking issues akin to those in a futures ETF. It lags spot Solana by 12% — though it has improved over the past month,” he mentioned.

    Related: US Bitcoin ETFs Register 2nd-Highest Inflows Since Launch Amid Crypto Rally

    Crypto commentator “Magoo PhD” echoed recent inquiries regarding why BlackRock, the world’s largest asset manager, “has not filed for a SOL ETF.”