Asset manager Bitwise has amended its US-based Solana ETF filing with the Securities and Exchange Commission to include a 0.20% annual management fee and a staking feature, a move that may signal increased competition among crypto ETFs, according to analyst Eric Balchunas.
“Thought we’d see a higher fee first—needs a real war to get it this low,” Balchunas commented on X Wednesday. “They probably figured it would end up there anyway, so why wait? Veteran Terrordome move right there,” he added.
The 0.20% fee positions Bitwise’s Solana ETF in the mid-range of typical crypto ETF fees, which usually range from 0.15% to 0.25%. “Low fees have a near-perfect track record of attracting investors, so this bodes well for inflow potential,” Balchunas noted.
Speculation over crypto ETF fees has been ongoing, with much of the industry’s focus on which issuers would offer the most competitive pricing ahead of potential launches.
Competition heated up ahead of the US debut of spot Bitcoin ETFs in January 2024, with VanEck waiving all fees and later extending the waiver through January 2026 for up to $2.5 billion in assets under management. At the same time, Grayscale Bitcoin Mini Trust set its annual sponsor fee at 0.15%.
The US’s first Solana staking ETF, the REX-Osprey Solana Staking ETF (SSK), launched on July 2 and ended its debut trading day with $12 million in inflows, charging an annual management fee of 0.75%.
Balchunas highlighted that Bitwise’s proposed Solana ETF would be cheaper, offer better tracking, and be fully physically backed by Solana spot assets. “SSK struggles with tracking issues like a futures ETF. It trails spot Solana by 12%—though performance has improved over the past month,” he said.
Crypto commentator Magoo PhD noted that many have wondered why BlackRock, the world’s largest asset manager, has yet to file for a Solana ETF. Analyst James Seyffart added that it would be “messed up” if BlackRock submitted a last-minute application, coming after other issuers had already navigated the SEC approval process.
Meanwhile, ETF analyst Nate Geraci forecasted on September 26 that multiple Solana ETFs with staking could gain US approval by mid-October.
