Solana News: Bitwise Undercuts Rivals With 0.20% Fee in Its Proposed Solana Staking ETF Filing

Key Takeaways:Bitwise’s Solana ETF filing includes staking and proposes a low 0.20% annual fee, signaling a competitive battle among issuers.ETF analyst Eric Balchunas called the move a “veteran Terrordome” tactic to gain an early pricing edge.The REX-Osprey Solana Staking ETF (SSK) launched earlier with a 0.75% fee and $12 million in day-one inflows.Analysts suggest low fees typically attract strong inflows, boosting Bitwise’s potential appeal.BlackRock has yet to file for a Solana ETF, sparking speculation on timing and competition ahead of expected mid-October approvals.Bitwise Moves Aggressively on Solana ETF PricingAsset manager Bitwise has proposed an ultra-low 0.20% management fee for its U.S.-based Solana (SOL, $220.92) ETF — a filing that now includes staking features, according to an amended submission to the U.S. Securities and Exchange Commission (SEC) on Wednesday.The move, analysts say, reflects how competitive the Solana ETF race is becoming as issuers vie to capture early investor inflows.ETF analyst Eric Balchunas commented on X (formerly Twitter):“Thought we’d see higher first — need war to get this low. They probably figured it’s gonna end up there anyway, so just do it now. Veteran Terrordome move right there.”With most crypto ETFs charging between 0.15% and 0.25%, Bitwise’s 0.20% proposal positions it directly in the middle of the range — but significantly below its Solana competitors.Competitive Pressure Builds Ahead of Solana ETF ApprovalsThe first Solana staking ETF, launched by REX-Osprey (SSK) on July 2, closed its debut day with $12 million in inflows and a much higher 0.75% annual fee.Balchunas noted that Bitwise’s filing offers better tracking and is 100% physically backed by spot Solana assets — unlike SSK, which he said suffers from “tracking issues like a futures ETF,” trailing spot SOL by roughly 12%.He added:“Low fees have a near-perfect record of attracting investors, so it’s a good sign for inflow potential.”As competition intensifies, Bitwise’s strategy could prompt other issuers to lower their fees even before SEC approval.Fee Wars Echo the Bitcoin ETF LaunchThe pricing dynamics mirror the Bitcoin (BTC, $121,497) ETF race earlier in 2024, when issuers competed aggressively on fees to attract early adopters.VanEck initially waived all fees on its spot Bitcoin ETF — later extending the waiver through January 2026 for up to $2.5 billion in AUM.Grayscale’s Bitcoin Mini Trust entered the market with a 0.15% sponsor fee.These early fee cuts set new industry benchmarks and fueled massive inflows into spot Bitcoin ETFs — a pattern analysts say could repeat with Solana.BlackRock’s Silence Raises QuestionsDespite growing anticipation, BlackRock — the world’s largest asset manager — has yet to file for a Solana ETF, a point raised by crypto commentator Magoo PhD, who questioned the delay.ETF analyst James Seyffart warned it would be “messed up” if BlackRock were to file last minute to launch alongside competitors who’ve already advanced discussions with the SEC.Meanwhile, ETF Store president Nate Geraci forecasted on Sept. 26 that several Solana staking ETF applications could gain U.S. approval by mid-October, potentially setting up a new wave of institutional Solana exposure.Market Impact and OutlookSolana (SOL) has gained 6.1% in the past 30 days, trading near $227 at the time of writing. Analysts say Bitwise’s aggressive pricing and inclusion of staking could make it one of the most investor-friendly crypto ETFs on the market if approved.If approved before competitors, the product could trigger a “fee war” among Solana ETF issuers — a dynamic similar to the spot Bitcoin ETF rollout earlier this year.