Bitwise's Solana ETF Draws $69.5M on Debut, Outpacing Rival Fund's Launch

Bitwise Asset Management's newly launched Solana ETF, BSOL, achieved $69.5 million in inflows on its debut Tuesday, significantly outperforming its rival, the Rex-Osprey Solana Staking ETF, which garnered $12 million. BSOL's strategy of direct staking positions it favorably, allowing it to provide a full staking yield of approximately 7% to investors with a competitive 0.20% management fee, waived for the first three months. In contrast, SSK allocates 54% to Solana holdings and 43.5% to other assets, such as CoinShares Physical Staked Solana ETP, and has a higher total expense ratio of 0.75%. This contrasting strategy can affect investor preferences as they evaluate returns versus fees. Both ETFs mark a significant step for institutional investment in Solana, highlighting growing interest in blockchain-based assets despite recent market challenges, including Solana's 3.1% price decline to $194. The positive reception of BSOL points to a broader trend of institutional capital entering the Solana ecosystem, leveraging the operational efficiencies offered by such funds in navigating regulatory requirements.

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