Bitwise has updated its application for a US-based Solana
$195.58
exchange-traded fund (ETF) to include a 0.20% annual fee and support for staking.
The revised filing was submitted to the US Securities and Exchange Commission on October 8.
The newly added 0.20% management fee is lower than many expected and sits on the lower end of typical fees for similar crypto investment products, which usually range between 0.15% and 0.25%.
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Eric Balchunas, an analyst specializing in ETFs, noted that while such low fees might usually appear later in the competition, Bitwise may be acting early because the firm believes fees will drop over time.
According to Balchunas, introducing a low fee from the beginning can help attract early interest and give Bitwise an edge.
The inclusion of staking in the ETF structure also allows the fund to potentially earn extra rewards by participating in Solana’s network, which could improve returns for investors.
Balchunas also pointed out that Bitwise’s proposed fund would directly hold Solana tokens, which offers a closer link to the actual asset than some other products on the market.
He contrasted this with other ETFs, such as SSK, which rely on futures contracts and have experienced tracking issues, sometimes falling behind the price of Solana itself.
Meanwhile, BlackRock’s iShares Bitcoin Trust (IBIT), a fund that focuses on Bitcoin, recently became the firm’s top-earning exchange-traded fund (ETF). How? Read the full story.
