Key Highlights
- The Bitwise Solana Staking ETF (BSOL) surpassed $500 million in assets under management within 18 days of trading.
- BSOL aims to stake 100% of its holdings to capture annual rewards averaging over 7%.
- As one of the first ETPs with integrated staking, it offers a temporary 0% sponsor fee for early investors.
Bitwise, the crypto asset manager, has announced that its Solana Staking ETF (BSOL) has crossed $500 million in assets under management. This was achieved within the first 18 days of trading.
The firm announced the news today, with the rapid inflow of capital suggesting a strong market demand for Solana-based investments.
Hunter Horsley, the CEO of Bitwise, addressed the rapid growth of the fund. “We are truly in awe of the speed and scale of BSOL’s growth,” said Horsley. “Crypto is becoming a mainstream asset class. BSOL hitting half a billion dollars in AUM this quickly is a clear testament to investors’ belief in the Solana ecosystem as a cornerstone of the future of the crypto industry.”
The Bitwise Solana Staking ETF is among the first crypto exchange-traded products (ETPs) to feature built-in staking mechanisms. All of the fund’s Solana holdings would be staked. Helius, a technology provider chosen for its security and performance, powers this process, which is overseen by Bitwise Onchain Solutions.
Bitwise’s plan for early investors
The fund aims to enable investors to take part in Solana’s network rewards through this structure. At the moment, the strategy aims to capture staking rewards that average over 7%.
Regarding the financial structure of the ETF, Bitwise has implemented a waiver period for early investors. The fund carries a net sponsor fee of 0% for the first three months on the first $1 billion in assets. All staking fees are waived for this initial three-month duration.
Following the expiration of the introductory period, the fee structure will adjust. The sponsor fee will be set at 0.20%. In addition, there will be a staking fee of 0.06%, which is charged only against the staking rewards of the ETF and not the principal assets of the ETF.
BSOL’s journey so far
BSOL debuted on October 30 as the first U.S. exchange-traded product to offer direct exposure to spot Solana with integrated staking. On the first day of trading, the fund garnered $69.5 million in net inflows in the U.S. market.
This immediate injection of capital signaled institutional demand for assets beyond Bitcoin and Ethereum and established the momentum that would drive the fund to half a billion dollars in assets under management in less than three weeks.
Its quick rise to half a billion dollars in assets under management demonstrates the immediate influence the BSOL ETF has had on the cryptocurrency market. As the initial fee waiver period proceeds, the fund remains on track in its ambitions to deliver regulated access to Solana staking rewards to traditional investors.
