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Bitwise Sets Low 0.20% Fee in New Solana ETF Filing With Staking

Key Takeaways

  • Bitwise updated its Solana ETF filing to include staking and set a low 0.20% annual fee, submitted to the SEC on October 8;
  • Analyst Eric Balchunas said the early low fee may help Bitwise attract investors before the market becomes more competitive;
  • The ETF will directly hold Solana tokens, unlike some competitors that rely on futures and face tracking issues.

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Bitwise Sets Low 0.20% Fee in New Solana ETF Filing With Staking

Bitwise has updated its application for a US-based Solana SOL $213.48 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.

Aaron S. Editor-In-Chief
Having completed a Master’s degree in Economics, Politics, and Cultures of the East Asia region, Aaron has written scientific papers analyzing the differences between Western and Collective forms of capitalism in the post-World War II era.
With close to a decade of experience in the FinTech industry, Aaron understands all of the biggest issues and struggles that crypto enthusiasts face. He’s a passionate analyst who is concerned with data-driven and fact-based content, as well as that which speaks to both Web3 natives and industry newcomers.
Aaron is the go-to person for everything and anything related to digital currencies. With a huge passion for blockchain & Web3 education, Aaron strives to transform the space as we know it, and make it more approachable to complete beginners.
Aaron has been quoted by multiple established outlets, and is a published author himself. Even during his free time, he enjoys researching the market trends, and looking for the next supernova.

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