Bitwise Slashes Solana ETF Fee to 0.20% as Fee War Heats Up Among Issuers

Bitwise Asset Management has sparked renewed competition in the crypto ETF market after cutting the management fee for its proposed U.S.-based Solana ETF to just 0.20%. It also added a staking component to the fund, a move analysts say could change investor expectations for upcoming digital asset funds.

ETF analyst Eric Balchunas called the decision a bold one, noting that Bitwise is getting ahead of a likely price war. “Thought we’d see higher first, need war to get this low,” he said in a recent X post. “They prob figured it’s gonna end up there anyway, so just do it now. Veteran Terrordome move right there.”

The amended filing, submitted to the U.S. SEC this week, makes Bitwise’s Solana ETF one of the lowest-cost crypto funds on the market. The 0.20% fee sits squarely in the middle of the range for most digital asset ETFs, which typically charge between 0.15% and 0.25%.

Bitwise Fee Cut Could Fuel Inflows

Balchunas said the move reflects Bitwise’s confidence in its product and understanding of investor behavior. “Low fees have a near-perfect record of attracting investors, so it’s a good sign for inflow potential,” he explained.

The crypto ETF space has seen similar battles before. Ahead of the January 2024 launch of U.S. spot Bitcoin ETFs, issuers aggressively competed on costs. VanEck waived all fees and later extended the waiver through January 2026 for up to $2.5 billion in assets, while Grayscale’s Bitcoin Mini Trust set its sponsor fee at just 0.15%.

The first Solana staking ETF, REX-Osprey Solana Staking ETF (SSK), debuted on July 2 with $12 million in day-one inflows and an annual management fee of 0.75%, making Bitwise’s proposal significantly cheaper by comparison.

BlackRock’s Silence Raises Questions

While Bitwise and others race to secure SEC approval, one name remains notably absent: BlackRock. Analysts and commentators have questioned why the world’s largest asset manager has yet to file for a Solana ETF.

ETF analyst James Seyffart warned it would be “messed up” if BlackRock swooped in at the last minute to launch alongside competitors who have already gone through months of regulatory discussions.

Meanwhile, ETF Store president Nate Geraci predicts that several Solana ETF applications featuring staking could win U.S. approval by mid-October, potentially setting off another round of fee wars among issuers eager to capture the next wave of crypto inflows.