Bitwise, the asset manager, has set a 0.20% fee on its revised Solana ETF application for the U.S., which now incorporates staking. This move may indicate the increasing competition among ETF issuers, as noted by ETF analyst Eric Balchunas.
“We expected to see higher fees initially; it takes a competitive landscape to get this low,” Balchunas remarked in a post on X on Wednesday. “They probably figured it would end up here eventually, so why not do it now?” he added, describing it as a “veteran Terrordome move.”
On Wednesday, Bitwise amended its filing with the U.S. Securities and Exchange Commission, updating the proposed Solana (SOL) ETF to feature an annual management fee of 0.20% and include staking. This fee positions it within the typical range for most crypto ETFs, which generally vary from 0.15% to 0.25%.
“Lower fees tend to attract investors effectively, signaling considerable inflow potential,” Balchunas clarified.
Speculation on Crypto ETF Fees Persists
As potential crypto ETF launches loom, the industry has frequently highlighted which issuers would provide the lowest fees.
Before the U.S. launch of spot Bitcoin (BTC) ETFs in January 2024, competition was particularly intense, with VanEck waiving all fees and extending the waiver through January 2026 for up to $2.5 billion in assets under management. In contrast, Grayscale Bitcoin Mini Trust (BTC) set an annual sponsor fee of 0.15%.
The REX-Osprey Solana Staking ETF (SSK), the U.S.’s inaugural Solana staking ETF, ended its first trading day on July 2 with $12 million in inflows, carrying an annual management fee of 0.75%.
BlackRock’s Indifference to Solana ETF
However, Balchunas noted that Bitwise’s offering is lower in cost, has superior tracking, and is fully backed by Solana’s spot assets. “The SSK has tracking problems similar to futures ETFs, trailing spot Solana by 12%—though the gap has improved recently,” he explained.
Related: US Bitcoin ETFs Experience Second-Highest Inflows Since Launch Amid Crypto Rally
Crypto commentator Magoo PhD voiced a query many are asking regarding why BlackRock, the largest asset manager, “has not filed for a SOL ETF.”
ETF analyst James Seyffart mentioned that it would be “unfair” if BlackRock submitted a last-minute application to launch alongside other issuers after those firms had invested effort with the SEC to prepare their products.
ETF analyst Nate Geraci predicted on September 26 that several applications for Solana ETFs with staking might receive U.S. approval by mid-October.
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