Grayscale Solana ETF (GSOL) to Launch with 0.35% Management Fee

• Grayscale Solana ETF (GSOL) files with 0.35% fee, pending SEC approval.
• Bitwise Solana ETF leads with 0.20% fee, focusing on staking rewards.
• Grayscale’s ETF includes staking, setting a competitive market entry.

Grayscale Solana ETF (GSOL) has filed for approval with a 0.35% management fee, aiming to become one of the first spot Solana exchange-traded funds (ETFs) with staking capabilities. The filing comes ahead of the U.S. Securities and Exchange Commission (SEC) decision, which is expected to be finalized soon. However, the approval process has been delayed due to the U.S. government shutdown. Once approved, the ETF will list and trade on NYSE Arca, marking a major move for Grayscale and the Solana ecosystem.

Grayscale’s Solana ETF (GSOL) will carry a 0.35% fee, payable in SOL, according to an S-1 form filed with the SEC on October 9. The filing also notes that Grayscale does not currently intend to waive the fee but includes a mention that it could be temporarily suspended. The fee structure for the Solana ETF has been established as the asset manager seeks SEC approval to launch the product on the market.

The Grayscale Solana ETF filing highlights the incorporation of staking as a feature for investors. Grayscale activated staking for its Solana Trust, allowing investors to earn rewards through Solana staking while managing their assets via a traditional brokerage account.

However, the filing raises concerns over the risks associated with staking, noting that validators could suffer losses or fail to attract participants, which could harm the Solana network. If approved, the Grayscale Solana ETF will offer one of the first opportunities to access staking in a regulated ETF structure.

Competitive Fee Structure: Bitwise Solana ETF vs. Grayscale Solana ETF

The fee structure of the Grayscale Solana ETF is slightly higher than that of Bitwise’s Solana ETF (BSOL). Bitwise currently leads the market with a 0.20% management fee, which is the lowest among available Solana ETFs. In addition, Bitwise has waived its fees for the first three months or until the assets under management reach $1 billion. Bitwise has rebranded its ETF as the Bitwise Solana Staking ETF, further focusing on staking rewards for investors.

The low fee and staking focus from Bitwise are seen as a strategic move to attract more inflows into the product. Grayscale’s 0.35% fee places it slightly behind in the competitive fee race, but it still represents a significant offering for those looking to invest in Solana through a regulated ETF vehicle.

Market Impact and Other Filing Details

Despite the ongoing delay in SEC approval, the Solana ecosystem remains active, with significant market activity continuing. Solana (SOL) is currently trading at around $222.10, experiencing a 2% decline over the last 24 hours. The price fluctuated between $217.20 and $228.63, with a slight increase in trading volume suggesting potential buy-the-dip sentiment from investors.

The filing for the Grayscale Solana ETF (GSOL) also outlines the involvement of key partners, including Davis Polk & Wardwell as tax counsel, and KPMG and Marcum as accounting firms. Coinbase Custody and Anchorage Digital Bank will serve as custodians for the ETF, further solidifying the institutional-grade infrastructure behind the product.