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    Home»Ethereum»Bitwise CIO: Solana Staking ETFs Lack a Key Component
    Ethereum

    Bitwise CIO: Solana Staking ETFs Lack a Key Component

    Ethan CarterBy Ethan CarterOctober 29, 2025No Comments3 Mins Read
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    Solana staking exchange-traded funds are set for a bright future on traditional stock exchanges, following Bitwise’s fund debut on the New York Stock Exchange, which exceeded $56 million in trading volume on its first day.

    Matt Hougan, Bitwise’s chief investment officer, referred to the Bitwise Solana Staking ETF (BSOL) as “the missing piece of the puzzle” during an interview on Cointelegraph’s Chain Reaction daily show, highlighting the substantial investment it garnered on the NYSE.

    So, @BitwiseInvest Solana Staking ETF totalled $56M in trading volume after its debut on @NYSE 💰

    As @EricBalchunas reported, it’s the biggest ETF debut in 2026.@Matt_Hougan described $BSOL as “the missing part of the puzzle”.

    Here’s why @solana staking ETFs WILL attract… pic.twitter.com/syFGy6Dwm9

    — Gareth Jenkinson (@gazza_jenks) October 29, 2025

    Hougan pointed out that previously, investors could earn higher returns by directly staking Solana rather than investing in an ETF that didn’t allow staking.

    “By using an ETF, you gain all the benefits of such an investment vehicle: very low costs, institutional custody, and hassle-free purchasing through your brokerage account. Plus, you’ll have the staking managed for you,” Hougan explained.

    “I believe this will become a primary method for global investments in Solana. It’s truly significant.”

    Investors seek custody AND staking yield

    Hougan clarified the distinction between traditional crypto ETFs, like those for Bitcoin and Ethereum, which primarily offer exposure to the asset. Staking ETFs provide a dual advantage for investors, he noted.

    “As an investor in something like $BSOL, not only are you profiting from Solana’s value, but you also receive around 7% additional Solana yearly. For traditional finance investors, this resembles a simplified form of dividends.”

    He mentioned that the product also aids in decentralizing and securing the Solana network, with the $BSOL ETF launching with $222 million in assets, equating to over 1.1 million SOL tokens.

    019a3068 5f1b 7838 806a 3e118dbb2733
    Source: Eric Balchunas

    Bloomberg’s senior ETF analyst Eric Balchunas announced that Bitwise’s SOL staking ETF recorded the highest trading volume for any ETF on its debut in 2025.

    Regulatory changes enabled Solana staking ETFs

    Hougan credited a shift in regulatory attitudes in the US as a key factor in the approval of Solana staking ETFs. Under Gary Gensler’s leadership at the SEC, Bitcoin and Ether ETFs faced lengthy delays for regulatory approval.

    The Bitwise executive stated that Solana staking ETFs would not have been “remotely feasible” without a significant change in US regulators’ perspectives on cryptocurrencies.

    “Even getting Solana unstaked was a challenge. We struggled to get Ethereum through the Gary Gensler scrutiny. Other assets would have faced even greater hurdles. Including staking adds another layer of complexity,” Hougan explained.

    Related: Bitwise SOL staking ETF debuts with $223M assets, reveals strong institutional interest

    He noted that regulators faced multiple complexities, such as liquidity and tax matters. However, the launch of BSOL and Grayscale’s Solana Trust ETF (GSOL) could pave the way for additional traditional finance investment products linked to proof-of-stake models.

    “Not only have we achieved this milestone, but it also opens avenues for various other ETPs featuring staking. This represents a significant proof-of-concept in the realm of crypto ETPs in the US.”

    Magazine: Solana vs Ethereum ETFs, Facebook’s influence on Bitwise: Hunter Horsley