10-Q: Bitwise Solana Staking ETF Details Q3 2025 Operations, Fee Waiver

The Bitwise Solana Staking ETF filed its Q3 2025 report, detailing its organizational phase, initial seeding, and a temporary waiver of its 0.20% annual sponsor fee until January 28, 2026.

Summary

• The Trust was organized on November 20, 2024, under Delaware law, with its primary objective to provide exposure to Solana's value and a secondary objective to derive additional Solana through staking.
• The Trust's name was amended from Bitwise Solana ETF to Bitwise Solana Staking ETF on September 19, 2025, to reflect its staking objective.
• As of September 30, 2025, the Trust had no operations other than organizational and registration matters, holding $200 in cash from the issuance of 8 seed shares to Bitwise Asset Management, Inc. (BAM).
• The Trust's registration statement became effective on October 27, 2025, and its shares (ticker BSOL) were listed on NYSE Arca, Inc. on October 28, 2025.
• On October 23, 2025, BAM redeemed its 8 Seed Shares for $200, and Bitwise Investment Manager, LLC (BIM), an affiliate of the Sponsor, purchased the initial 100,000 Shares (Seed Baskets) for $2,500,000 at $25.00 per share.
• BIM subsequently sold all of its 100,000 Shares for cash on October 28, 2025.
• The Sponsor Fee is 0.20% per annum of the Trust's Solana holdings, but the Sponsor has contractually waived this fee on the first $1 billion of Trust assets through January 28, 2026.
• The Trust is classified as an emerging growth company and has opted out of the extended transition period for complying with new or revised accounting standards.

Sentiment

Score: 7

Explanation: The filing details the successful organizational and pre-operational phases of the Bitwise Solana Staking ETF, including its listing and a competitive fee waiver. While financial results are minimal due to its nascent stage, the progress towards full operation and the strategic fee waiver are positive indicators for its market entry.

Positives

• The Sponsor has contractually waived the 0.20% annual management fee on the first $1 billion of Trust assets until January 28, 2026, benefiting early investors.
• The Trust offers a clear investment objective of providing exposure to Solana and generating additional Solana through staking, differentiating it from pure spot crypto products.
• As an Exchange Traded Product (ETP), it provides investors with efficient access to the Solana market through traditional brokerage accounts, avoiding direct digital asset acquisition complexities.
• The Trust explicitly states it will not use derivatives, reducing potential counterparty and credit risks.
• Robust custody arrangements are in place with Coinbase Custody Trust Company, LLC, a New York State limited liability trust company, for secure safekeeping of Solana holdings.
• Disclosure controls and procedures were evaluated as effective as of September 30, 2025, ensuring timely and quality public disclosures.

Negatives

• The Trust had no operational activity or investment in Solana as of September 30, 2025, meaning no performance data is available for the reported period.

Risks

• General economic, market, and business conditions could materially adversely affect the Trust's business, financial condition, or results of operations.
• Technology developments regarding the use of Solana and other digital assets, including systems used by the Sponsor and custodian, pose risks.
• Changes in laws or regulations, including those concerning taxes, made by governmental authorities or regulatory bodies, could impact the Trust.
• Other world economic and political developments, including global pandemics, could affect the Trust's operations.
• The Solana Custodian (Coinbase Custody) is not insured by the Federal Deposit Insurance Corporation (FDIC).
• Cash held in bank deposit accounts may, at times, exceed U.S. federally insured limits, exposing the Trust to credit risk.
• There are inherent limitations to the effectiveness of any system of disclosure controls and procedures, including the possibility of human error and circumvention or overriding of controls.

Future Outlook

The Trust's operations commenced on October 23, 2025, with shares listed on NYSE Arca on October 28, 2025. The Sponsor expects the Trust to have an immaterial amount of cash flow from operations and an insignificant cash balance at the end of each reporting period, as it generally does not intend to hold cash. The Sponsor will waive the 0.20% annual management fee on the first $1 billion of Trust assets until January 28, 2026, after which the fee will begin to accrue.

Management Comments

• "Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report."
• "Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report."

Industry Context

The Bitwise Solana Staking ETF represents a significant development in the digital asset investment landscape, offering regulated exposure to Solana, a major cryptocurrency, within a traditional ETF structure. The inclusion of staking capabilities differentiates it from simpler spot ETFs, potentially offering enhanced yield for investors. This aligns with a broader trend of financial institutions seeking to bridge traditional finance with the growing digital asset market, providing accessible and regulated investment vehicles for cryptocurrencies. The temporary fee waiver is a competitive move in a nascent but increasingly crowded market for crypto ETFs.

Comparison to Industry Standards

• The 0.20% annual sponsor fee, with a waiver on the first $1 billion of assets until January 28, 2026, is competitive within the emerging crypto ETF market, comparable to or lower than initial fees seen in some Bitcoin ETFs.
• The inclusion of staking capabilities differentiates this ETF from pure spot crypto ETFs, potentially offering a yield component that could make it more attractive compared to non-staking alternatives.
• The use of Coinbase Custody Trust Company, LLC, a New York State limited liability trust company, for Solana custody aligns with industry best practices for institutional-grade digital asset security.
• The pricing benchmark, CME CF Solana Dollar Reference Rate New York Variant, is a recognized standard in the digital asset space, similar to benchmarks used for other major crypto ETFs.

Corporate Governance

Related Party Transactions

• Bitwise Asset Management, Inc. (BAM), the parent company of the Sponsor, purchased 8 Seed Shares for $200 on September 17, 2025, and owned 100% of the outstanding shares as of September 30, 2025.
• BAM redeemed its 8 Seed Shares for $200 on October 23, 2025.
• Bitwise Investment Manager, LLC (BIM), an affiliate of the Sponsor, purchased 100,000 Shares for $2,500,000 on October 23, 2025, and subsequently sold them on October 28, 2025.
• The Sponsor has agreed to pay all ordinary operating expenses of the Trust in exchange for a unitary management fee, which is waived on the first $1 billion of assets until January 28, 2026.

Stakeholder Impact

• Shareholders will gain regulated exposure to Solana and potential staking rewards through a traditional ETF structure. The initial fee waiver benefits early investors.
• The Sponsor (Bitwise Investment Advisers, LLC) benefits from managing the ETF, with future fee revenue and increased market presence in the digital asset space.
• Authorized Participants will facilitate the creation and redemption of shares, benefiting from arbitrage opportunities.
• Service Providers (e.g., Coinbase Custody, BNY Mellon) receive fees for their services, ensuring secure and compliant operations.

Next Steps

• Full operational commencement of the Trust, including active management of Solana holdings and staking activities.
• Continued marketing and growth of the Trust's assets under management.
• Accrual of the Sponsor Fee at 0.20% per annum after January 28, 2026, on assets exceeding $1 billion.

Key Dates

Recommendation

The filing details the successful launch and initial operational setup of the Bitwise Solana Staking ETF, including a competitive fee waiver. While the Trust is now operational, it is too early to assess its performance or market traction. The 'hold' recommendation reflects the positive foundational steps and strategic positioning, but advises waiting for actual performance data and market reception before making a stronger directional call. The fee waiver is a strong incentive, but the long-term success will depend on Solana's price performance and the effectiveness of the staking strategy.

Keywords

Solana, Staking ETF, BSOL, Bitwise, Digital Asset, Cryptocurrency, SEC Filing, 10-Q, Exchange Traded Product, Crypto ETF, Investment Trust, Coinbase Custody