Solana ETF Race Heats Up as Grayscale Joins Bitwise on Wall Street

Core Insights - Grayscale Investments launched its Solana Trust ETF (GSOL) on NYSE Arca, marking the first of its staking products to list under new SEC-approved standards, intensifying competition in the Solana ETF market [1][2] - The launch expands Grayscale's digital asset offerings beyond Bitcoin and Ethereum, providing investors with exposure to Solana's proof-of-stake blockchain [2] - GSOL has a 0.35% expense ratio and holds 525,387 SOL tokens, with 74.89% currently staked to generate network rewards, potentially adding 5-6% annual returns based on historical staking yields [3] Company and Product Details - GSOL is the third Solana ETF trading on U.S. exchanges, joining Bitwise's BSOL and Rex-Osprey's SSK [2] - Grayscale plans to pass on 77% of all staking rewards to investors on a net basis, enhancing the attractiveness of the product [3] - The product is not registered under the Investment Company Act of 1940, which means it lacks the regulatory protections typical of traditional ETFs and mutual funds [4] Market Context - Bitwise's Solana ETF (BSOL) captured $69.5 million in first-day inflows, significantly outperforming Rex-Osprey's SSK, which raised $12 million [6] - BSOL stakes 100% of its held SOL tokens in-house, charging a 0.20% management fee, which is waived for the first three months [6] - Institutional interest in Solana is attributed to its leadership in on-chain revenue, highlighting the appeal of ETFs among institutional investors [6][7]