Finance Investing Cryptocurrency 8 min read

9 Key Differences Between Bitwise Solana ETF and Rivals

Discover how Bitwise's Solana ETF compares to others in terms of fees, staking design, and more. Learn the key differences today.

9 Key Differences Between Bitwise Solana ETF and Rivals

Crypto Opening

Solana spot ETFs are arriving just as the network’s scale and activity are accelerating—and investors want clean, brokerage-based access to SOL without self-custody. Bitwise Solana Staking ETF (BSOL) is a U.S. spot Solana ETP with built-in staking and competitive fees, offering direct SOL exposure in a simple wrapper. This concise Solana ETF comparison highlights where BSOL differs most from peers: spot exposure, staking design, fees and waivers, early flows and liquidity, issuer strength, structure, and the network fundamentals that underpin returns.

“A spot crypto ETF is an exchange-traded fund that holds the underlying cryptocurrency directly rather than using futures or swaps. It aims to track the asset’s market price closely, enabling brokerage-based access without self-custody.”

Below, we expand on BSOL’s integrated staking, a 0.20% fee with an initial waiver, rapid early flows, and Solana’s high throughput and low fees—with source-backed figures where it matters. Crypto Opening tracks issuer updates and links to primary sources so readers can verify the latest terms.

Direct SOL exposure

BSOL provides 100% direct exposure to SOL as the first U.S. Solana ETP with built-in staking. Direct exposure means the fund holds the underlying asset itself rather than using futures, swaps, or multi-asset baskets—an approach that typically reduces derivatives-related roll costs and strategy drift, but still entails standard ETF premium/discount dynamics. In practice, BSOL has traded with small, transient deviations around NAV; for example, fund data in late October 2025 showed a sub‑1% premium—normal behavior for a spot ETP with primary-market creation and redemption.

Comparison at a glance:

  • Product: BSOL

    • Exposure type: Spot ETP (holds SOL directly)
    • Implications: Lower structural tracking error to spot; standard ETF premium/discount mechanics; no futures roll.

  • Product: Derivatives-based SOL strategy fund (futures/swaps)

    • Exposure type: Futures/derivatives
    • Implications: Potential roll costs, collateral management, and tracking drift vs. spot; may involve more complex tax treatment.

  • Product: Solana trust

    • Exposure type: Trust structure (closed-end)
    • Implications: Creation/redemption often constrained; premiums/discounts to NAV can persist; tracking can deviate from spot over time.

Keywords to know: spot exposure, tracking error, Solana trust.

Built-in staking strategy

BSOL’s design aims to stake essentially all SOL via Bitwise Onchain Solutions, leveraging Helius-powered validator infrastructure and operations. Staking rewards are integrated into the product’s total return profile, subject to the manager’s staking policy and operational risk controls, as detailed in the Bitwise trading notice for BSOL: Bitwise trading notice for BSOL.

“Staking is the process of locking tokens to help secure a proof-of-stake blockchain in exchange for yield, which can be distributed or reinvested. It introduces potential slashing or operational risks alongside the added return.”

How peers approach staking:

  • Some rivals, such as those highlighted in recent launch coverage, incorporate staking or have indicated plans to do so; others keep exposure un-staked to minimize operational complexity: Fidelity and Canary spot Solana ETF coverage.
  • Differences in validator selection, commission, and whether rewards are reinvested can impact tracking, yield, and risk.

Investor implications: staking rewards, slashing risk, validator oversight, reinvestment cadence.

Fee structure and waivers

BSOL’s gross management fee is 0.20%, with an initial waiver reducing the net expense ratio to 0.00% for the first three months on up to the first $1 billion in assets, per the Bitwise launch announcement: Bitwise launch announcement. The BSOL fund site has also shown a 0.00% net expense ratio in recent periods; always verify current figures and waiver status directly: BSOL fund site.

How rivals compare on fees and waivers:

  • Franklin SOEZ: 0.19% gross fee; promotional waiver reportedly in place until May 31, 2026 or until certain AUM milestones (e.g., $5B) are reached—see details compiled by third-party reviewers: NerdWallet’s Solana ETF roundup.

Illustrative total-cost math:

  • Over one year, a 19–25 bps fee difference can roughly offset a portion of staking rewards (often 50–150 bps net after validator and fund costs).
  • Over three years, compounding magnifies small fee gaps, especially if rewards are reinvested into NAV.

Table: Example fee terms

  • Product: BSOL | Gross fee: 0.20% | Waiver: 0.00% for first 3 months, up to $1B AUM | End date: Initial launch window
  • Product: Franklin SOEZ | Gross fee: 0.19% | Waiver: Promotional waiver through May 31, 2026 or AUM cap | End date: May 31, 2026 (subject to terms)

Launch flows and investor demand

BSOL saw strong early traction: approximately $197 million of first‑week inflows and more than $500 million in assets within 18 days—an uncommon ramp that underscores broad demand and distribution reach, according to Bitwise’s update: Bitwise’s $500M AUM milestone update. Other Solana spot products also reported steady post‑launch activity, though daily flows often diverge from price action.

Context matters: in late 2025, SOL retraced toward the $150 area despite ETF interest, reminding investors that flows and prices can move in opposite directions over short horizons: market coverage of Solana’s late‑2025 pullback.

Milestone timeline (illustrative):

  • Listing and first trades
  • First‑week flows near $200M
  • AUM surpasses $500M in ~18 days
  • Intermittent small premiums/discounts vs. NAV

Liquidity and trading spreads

“ETF liquidity is a function of both on‑screen volume and the liquidity of the underlying asset. Tight spreads and robust market maker support lower investor trading costs.”

BSOL opened with healthy volumes and on-exchange depth typical of a mainstream listing, aided by its NYSE venue and active market maker support—key for reducing bid‑ask spread costs and slippage: ETF.com’s BSOL page.

Practical trading checklist:

  • Pre‑trade: screen real‑time spreads and average daily volume.
  • Use limit orders, especially for larger clips.
  • Avoid the opening and closing auctions if spreads widen.
  • For block trades, coordinate with the primary market and understand creation unit sizes to minimize impact.

Keywords: bid‑ask spread, primary market, market makers.

Issuer track record and AUM scale

Issuer strength influences operations, security, and market confidence. Bitwise reports $15B+ in crypto assets, coverage of 4,000+ wealth teams and 15 banks, and a 125+ person technology and investment staff—resources that can support staking operations, client service, and tracking oversight: Bitwise trading notice for BSOL. BSOL’s rapid AUM scale-up (surpassing $500M within 18 days) further signals distribution reach and market maker engagement.

Issuer due diligence framework:

  • Longevity in crypto ETPs and operational disclosures
  • Custody arrangements and security practices
  • Staking workflow (validator selection, monitoring, slashing controls)
  • Historical tracking error and premium/discount management

Network fundamentals backing exposure

Solana’s design emphasizes high throughput and low fees—foundational for onchain activity and, by extension, validator rewards that underpin staking yields. Reported metrics include up to 100,000 transactions per second capacity, ~400ms time to finality, and median fees near $0.001—figures Bitwise highlights in its materials: Bitwise launch announcement. Bitwise also points to over $2 billion in network revenue in the past year, indicating robust ecosystem monetization.

Caution: strong fundamentals and ETF inflows do not eliminate volatility; SOL has experienced sharp drawdowns even amid positive headlines. Investors should size positions accordingly and consider time horizons that match their thesis.

Keywords: throughput, network revenue, transaction fees, confirmation time.

Structure and operations

BSOL trades on the NYSE and is structured as a U.S. ETP offering direct SOL exposure with integrated staking via Bitwise Onchain Solutions using Helius technology. Product mechanics—custody, staking operations, and creation/redemption—drive tracking quality, distributions, and risk.

“An exchange‑traded product (ETP) is a security that trades on exchanges and seeks to provide exposure to an underlying asset or index. Crypto ETPs are designed to closely track spot prices, subject to custody, fees, and operational factors.”

Structure comparison

  • Spot ETP (e.g., BSOL): Open‑ended with primary market creation/redemption; tends to keep premium/discount tight; tracks spot SOL net of fees and staking operations; standard 1099 tax reporting for most U.S. funds.
  • Trust: Often closed‑ended; limited redemption; premiums/discounts can persist; tracking can deviate materially; distributions and tax can vary by trust terms.
  • Derivatives/strategy fund: Uses futures/swaps; subject to roll costs, collateral yields, and basis; tracking may drift from spot; tax treatment depends on structure and instruments.

Keywords: spot ETP, trust structure, creation/redemption.

Scalability and transaction costs

Solana’s low latency (400ms) and very low median transaction fees ($0.001) enable high‑frequency onchain activity, which can boost network revenues and, indirectly, validator economics that support staking yields.

“Transaction throughput measures how many transactions a blockchain can process per second. Higher throughput with low fees can attract more users and applications, potentially driving network revenues and validator rewards over time.”

Latency context:

  • Solana: ~400ms
  • Ethereum: ~12 seconds (base L1)
  • Bitcoin: ~10 minutes (per block)

Keywords: TPS, latency, gas fees.

Frequently asked questions

How does staking inside a Solana ETF affect returns and risks?

Staking can add incremental yield, especially when rewards are reinvested; it also introduces validator and operational risks that can affect tracking. Crypto Opening’s guides summarize how each fund manages staking and slashing controls.

What fees should investors evaluate beyond the headline expense ratio?

Consider the net expense after waivers, bid‑ask spreads, brokerage commissions, and any premium/discount to NAV. Crypto Opening’s cost checklist helps compare these drivers side by side.

How do liquidity and spreads impact total cost of ownership for crypto ETFs?

Tighter spreads and higher volume typically reduce trading costs. Crypto Opening recommends using limit orders and avoiding the open/close to minimize slippage.

Does a spot Solana ETF differ from derivatives-based or trust structures?

Yes—spot ETPs hold SOL directly, while derivatives funds use futures or swaps and trusts can trade at persistent premiums/discounts. Crypto Opening’s comparisons outline how these choices show up in tracking and taxes.

Are staking rewards distributed or reinvested inside Solana ETFs?

Policies vary: some reinvest to enhance NAV, others distribute periodically. Crypto Opening maintains up‑to‑date snapshots of each fund’s reward handling and tax notes.