In summary
- Bitwise launched a Solana Staking ETP on Deutsche Börse, aimed at European investors, offering additional returns through staking.
- SOL hit a new all-time high in November, driven by expectations of a more favorable regulatory environment in the US following the change in administration.
- The SEC has not yet approved Solana spot ETFs in the US, but managers such as Bitwise, VanEck and 21Shares have already submitted proposals.
There is no Solana exchange-traded product (ETF) in the US yet, and until the SEC approves such funds, asset managers are fueling an apparent appetite among European investors for products related to the sixth-largest Cryptocurrency. .
Cryptocurrency asset manager Bitwise today announced its new Solana Staking ETP, which will be listed in Germany on the Deutsche Börse AG. The fund gives investors the opportunity to earn higher returns compared to other SOL products, according to Bitwise, because it uses a staking mechanism.
Staking refers to the process of “locking” digital coins or tokens to help keep a cryptocurrency network running. Proof-of-stake networks like Solana reward users who pledge their coins to the network by providing yield in the form of additional tokens.
Bitwise said in a statement on Wednesday that the fund will provide investors with a “low-cost, liquid and transparent investment vehicle for staking SOL exposure.” Blockworks first reported the news on Tuesday ahead of the official announcement.
SOL is the currency that runs on Solana, its native Blockchain. The Solana network is used by developers for everything from building DeFi or decentralized finance applications to launching memecoins or creating games.
The Solana ecosystem competes with Ethereum, the network behind ETH, by offering cheaper and faster transactions.
Several major asset managers in the US – including VanEck and 21Shares – have filed paperwork to launch a Solana spot ETF. Such a fund would allow investors to buy stocks that track the price of SOL. Bitwise itself took a first step towards such a presentation in the US in November.
But staking is a controversial topic in the US as the SEC has sued cryptocurrency exchanges for allegedly violating securities laws with staking products. The regulator has also previously alleged that SOL is an unregistered security.
However, with Donald Trump returning to the White House on a pro-cryptocurrency platform and SEC Chairman Gary Gensler preparing to resign effective January 20, 2025, both investors and analysts are increasingly optimistic that Such regulatory hurdles will soon be cleared. That’s part of what drove SOL to a new all-time high in November, after Election Day.
Edited by Andrew Hayward
Daily Debrief Newsletter
Start every day with the top news stories right now, plus original features, a podcast, videos and more.
For the Latest Crypto News, Follow ©KeynoteUSA on Twitter Or Google News.
Disclaimer: Please note that the information provided on this page is for News purposes only and should not be considered investment or trading advice. ©Crypto.keynoteusa.com strongly recommends that you conduct independent research and/or consult with a qualified professional before making any investment decisions.
