Solana ETFs: The Next Big Bet for Institutional Investors
You are here: Home / News / Solana ETFs: The Next Big Bet for Institutional Investors
Key Takeaways:
- Solana (SOL) could see ETF approval alongside XRP after legal clarity emerges under a new SEC administration.
- Bitwise has launched a SOL staking ETP in Europe, offering competitive staking rewards.
- Solana staking infrastructure advancements hint at future integration into US-based spot ETFs.
A surge in cryptocurrency ETFs is expected next year, with Bitcoin-Ethereum combo ETFs likely leading the way. These will possibly be followed by Litecoin and Hedera (HBAR), which it believes have an advantage since the SEC has not classified them as securities. The appearance of Solana (SOL) and XRP ETFs will be delayed by their ongoing legal disputes regarding their status as securities.
Although the current administration of the SEC rejected the recent SOL ETF filings, a change in that administration might mean a new set of opportunities. According to experts, the path to ETFs linked with SOL and XRP will not be easy unless the legal ambiguity surrounding these tokens is resolved.\
We expect a wave of cryptocurrency ETFs next year, albeit not all at once. First out is likely the btc + eth combo ETFs, then prob Litecoin (bc its fork of btc = commodity), then HBAR (bc not labeled security) and then XRP/Solana (which have been labeled securities in pending… pic.twitter.com/29vMdciZxE — Eric Balchunas (@EricBalchunas) December 17, 2024
Bitwise Drives Solana Staking ETP Innovation
According to the report, Bitwise has introduced a Solana staking ETP, ticker BSOL, in Europe, supported by staking services from Marinade. The product comes with an annual return of 6.48% at a pretty decent management fee of 0.85%, marking one of the most important steps for integrating benefits related to staking among investors. This move comes after Bitwise filed for a Solana spot ETF in the US, which was its strategic focus on the network.
SOL’s staking rewards, subsidized by the payouts given to validators, currently yield about 8% annually-more than double that of Ethereum’s average. Among European products such as BSOL, those rewards are included, while their US ETFs are held back because of regulatory concerns.
Future Potential for US-Based Solana ETFs
The entry of firms like Bitwise and VanEck into Solana staking underscores growing institutional interest. If regulatory conditions change, Bitwise’s acquisition of the ESOL product and development of staking infrastructure in Europe could pave the way for integrating staking rewards into future US ETFs.
With staking rewards one of the major draws for Solana investors, clarity under a Paul Atkins-led SEC could reshape the landscape. If staking rewards are no longer considered securities, restructured ETF applications may bring products like BSOL to the US market. However, for as long as the legal and regulatory environment continues to take shape, Solana stays at the forefront of the ETF competition, a proof of rising appeal to institutional investors.
Related | 7 Best Coins to Buy This Week That Could Be Worth a Closer Look
