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- Grayscale’s latest filing has confirmed that a 0.35% fee has been imposed on the Solana (SOL) ETF, following Bitwise’s revision of its filing to include a 0.2% fee.
- An analyst has predicted a crash for SOL, claiming that on-chain data has been “printing” declining numbers since last year.
The final decision on the Grayscale Solana ETF (GSOL) approval is due today; however, a delay is expected since the US government entered shutdown on October 1.
Most ETFs related to SOL, XRP, and other cryptocurrencies, such as those filed by Grayscale, 21Shares, Bitwise, Canary Capital, WisdomTree, and CoinShares, were registered under the Securities Act of 1933.
This implies that the US Securities and Exchange Commission (SEC) has to approve them before they can hit the market directly. The ongoing situation in the US means the process is now stalled, as highlighted in our earlier post.
Grayscale Solana ETF (GSOL) Fees
Pending the official decision, Grayscale has submitted an S-1 form, indicating that it has imposed a fee of 0.35% for the Solana ETF. Fascinatingly, the sponsor fee was said to be in SOL. The filing also made mention of staking, cautioning that this may either bring losses or prove unattractive to validators, which may, in the long run, affect the Solana network.
Meanwhile, staking was recently enabled on Solana Trust by Grayscale. According to a report, GSOL could become one of the first Solana Exchange Traded Products (ETPs) with staking ability once approved by the SEC and listed on NYSE Arca.
In the filing, Coinbase Custody was listed as the primary custodian while Anchorage Digital Bank was mentioned as an additional custodian. Apart from these, Davis Polk & Wardwell was listed as the tax counsel.
Earlier, Bloomberg analyst Eric Balchunas hinted that the approval of the SOL ETF is now a matter of when, as indicated in our recent discussion. This was after Bitwise had amended its filing to include a 0.20% fee, currently the lowest among the other ETFs.
Bitwise is not playing around. Low fees have a near-perfect record of attracting investors, so it’s a good sign for inflow potential.
The Bitwise Solana ETF (BSOL) has also changed its name to Bitwise Solana Staking ETF.
Currently, the price of SOL is struggling to sustain the recently accumulated gains as it plunges below $220 after losing 3% of its value in the last 24 hours and 4.6% of its value in the last seven days. According to CoinMarketCap data, SOL’s daily trading volume is still up by 3.7% with $7.3 billion changing hands.
Solana’s Potential Crash
Recently, an analyst from Gerhard – Bitcoin Strategy on YouTube highlighted that SOL could likely crash as its on-chain data paints a “worrying picture”. This analyst pointed out that SOL gained only 33% compared to Bitcoin’s 77% over the past year.
Also, the Total Value Locked (TVL) of SOL significantly declined from $10 billion to $200 million, representing a 98% fall during the Decentralized Finance (DeFi) winter. Apart from this, he also observed that the active addresses of the asset have been shrinking since November 2024. In the worst case, he believes Solana can crash more than 95% from the current level.
Regardless of these concerns, SOL is expected to stage a bullish reversal once it can record massive numbers on Institutional flow, on-chain data, and gets its ETFs approved, as mentioned in our previous news brief. As also noted in our previous coverage, the asset could reach $2000 this cycle if it mirrors Ethereum’s (ETH) move in the last bull cycle.
