Bitwise is making moves in the world of crypto ETFs. They’ve refreshed their proposal to the U.S. authorities for a Solana exchange-traded fund (ETF) designed for American investors. The revised application now features a 0.20% annual management charge and integrates a mechanism for staking.
This updated version was formally presented to the Securities and Exchange Commission (SEC) on October 8th.
The proposed 0.20% fee is surprisingly competitive. Industry observers had anticipated a higher cost, as similar investment vehicles typically levy fees in the 0.15% to 0.25% range.
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ETF expert Eric Balchunas suggests Bitwise’s early adoption of lower fees might be a strategic move, betting on a future trend of decreasing expenses in the crypto ETF sector.
Balchunas argues that a low-fee approach from the outset could attract investors early, positioning Bitwise favorably against future competitors.
The inclusion of staking allows the ETF to potentially generate additional income, leveraging the Solana network’s staking mechanism. This could boost overall returns for ETF holders.
Balchunas further clarified that the Bitwise fund intends to directly own Solana, giving investors direct exposure to the cryptocurrency’s performance.
He contrasted this approach with other ETFs, specifically mentioning SSK, which utilizes futures contracts. SSK has reportedly struggled with accurately reflecting Solana’s price, sometimes lagging behind its actual market value.
In related news, BlackRock’s iShares Bitcoin Trust (IBIT), an ETF centered on Bitcoin, has recently risen to become BlackRock’s highest-performing ETF. Want to know why? Discover the story here.