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Bitwise Asset Management has amended its Solana ETF application with the Securities and Exchange Commission to include a 0.20% annual management fee and staking capabilities, undercutting competitors in what analysts are calling an emerging fee war among crypto fund issuers. The move has stirred conversation among analysts, signaling an impending price war among digital asset fund issuers.
ETF expert Eric Balchunas of Bloomberg Intelligence described the move as “a veteran Terrordome strategy,” suggesting Bitwise intentionally jumped straight to an aggressive pricing model that undercuts potential competitors.
“Thought we’d see higher first need war to get this low,” Balchunas said in an X post on Wednesday. “They probably figured it’s gonna end up there anyway, so just do it now.”
With its Crypto ETF fee now among the lowest in the market, Bitwise appears positioned to capture early inflows once the Solana ETF receives regulatory clearance. The proposed 0.20% annual management fee also comes with a staking feature, allowing investors to earn Solana rewards directly within the ETF structure which is a first for a U.S.-based product of this kind.
“Low fees have a near-perfect record of attracting investors, so it’s a good sign for inflow potential,” Balchunas added.
The race to the bottom on fees has become a defining trend in the crypto ETF sector. As anticipation builds for new altcoin ETFs, issuers are increasingly using fee reductions as their competitive edge.
Before the U.S. debut of spot Bitcoin ETFs in January 2024, asset managers aggressively cut fees to attract institutional investors. VanEck waived all fees for its fund and later extended the waiver through January 2026 for up to $2.5 billion in assets under management. Meanwhile, Grayscale launched its Bitcoin Mini Trust at just 0.15% annually.
The arrival of Solana-based ETFs has reignited that same fee war. REX Shares launched the REX-Osprey Solana Staking ETF (SSK) on July 2, 2025, ending its debut day with $12 million in inflows but with a much steeper Crypto ETF fee of 0.75%.
“Bitwise’s proposed offering is cheaper, has better tracking, and is 100% physically backed by Solana’s spot assets,” Balchunas noted. “SSK is riddled with tracking issues like a futures ETF as it trails spot Solana by 12%, though it has improved recently.”
Industry experts agree that such disparities in cost and performance could heavily influence investor migration once multiple Solana ETFs hit the market.
Bitwise’s Solana ETF offers investors direct exposure to the Solana blockchain’s native asset, SOL, along with the benefits of staking yield. Staking allows ETF holders to earn additional returns as rewards for validating network transactions which is an inclusion that analysts say enhances the product’s appeal.
The proposed Crypto ETF fee of 0.20% positions Bitwise competitively against existing crypto funds, balancing accessibility with profitability. For context, most crypto ETFs today charge between 0.15% and 0.25%, putting Bitwise near the lower middle of the range.
ETF commentator James Seyffart of Bloomberg ETF Research recently remarked that low-cost, yield-enhancing ETFs are “poised to redefine investor behavior in digital assets.”
“Fee compression is great for investors and terrible for fund margins, but it’s the inevitable path for mainstream adoption,” Seyffart said.
Market watchers also highlight that Bitwise’s move could pressure larger asset managers particularly BlackRock to enter the Solana ETF race. Crypto analyst Magoo PhD, a popular commentator on X, questioned why BlackRock has yet to file for a SOL ETF, speculating that the firm may be waiting to observe early market performance before entering.
Despite optimism, the SEC’s approval timeline for Solana ETFs remains uncertain. ETF Store President Nate Geraci forecasted on Sept. 26 that several Solana ETF applications, including Bitwise’s, could receive approval by mid-October.
However, the pace of reviews has been hampered by broader market conditions and regulatory scrutiny following the high-profile launches of Bitcoin and Ethereum spot ETFs earlier this year.
Still, analysts say the ultra-low Crypto ETF fee gives Bitwise a strong early-mover advantage. If the Solana ETF launches on schedule, it could draw significant institutional and retail interest particularly from investors seeking both yield and low-cost exposure to Solana’s expanding ecosystem.
Bitwise’s amendment aligns with the company’s long-term strategy of driving mainstream crypto adoption through transparent, accessible financial products. The firm currently manages over $3 billion in digital asset funds, including spot and futures ETFs linked to Bitcoin, Ethereum, and other altcoins.
