New York Stock Exchange (NYSE) Arca-approved Solana Exchange Traded Funds (ETFs) and the ETFs could hit the market today.
The hopes of the launch of the SOL ETF were rejuvenated after the NYSE officially approved Bitwise’s SOL staking product. According to a notice posted by the U.S. Securities and Exchange Commission on October 27, the NYSE has formally approved the Solana staking ETF filed by Bitwise, the ETF provider.
The exchange’s approval means that the Exchange Traded Product (ETP) has met the exchange’s criteria and is ready to list and register shares of the Bitwise Solana ETF.
Senior ETF analyst for Bloomberg, Eric Balchunas, commenting on an X post yesterday, stated, “Confirmed. The Exchange has just posted listing notices for Bitwise Solana, Canary Litecoin, and Canary HBAR to launch TOMORROW, and grayscale Solana to convert the day after. Assuming there’s not some last min SEC intervention, looks like this is happening.”
The Bitwise Solana Staking ETF tracks the price of SOL and the staking rewards offered by the network. The ETF moves up and down in sync with the prices and the staking rewards generated by the SOL network. The SOL tokens backing the ETF are held in institutional-grade cold storage and benchmarked to the Compass Solana Total Return Monthly Index (CSTRMI) is a specialized benchmark that measures the total return you would earn by holding and staking Solana.
Perks of having an ETF over the token
The ETF is like a basket that can consist of tokens, coins, stocks, or a combination of any tradable asset. In this scenario, it’s the SOL’s price and the staking reward that are in the basket. When you hold an ETF, you don’t actually own the token itself, but it’s more or less the phase value, or a representation of the token, that you hold.
As the ETF depends on the SOL price and staking rewards, investors benefit from both:
SOL’s price appreciation and the yield generated by staking. With ETFs, there’s no need to manage private keys or run validators. On top of convenience, investors get exposure to staking income in a familiar ETF wrapper. In addition, it simplifies taxes and reporting, compared to on-chain staking.
