tl;dr
Bitwise is launching a Solana staking ETP in the European Union after facing regulatory issues in the US. The firm acquired a European ETP issuer in August, positioning itself to enter the EU market. This move comes after the SEC stalled Bitwise's efforts to launch a Solana ETF in the US. The new ET...
Bitwise is set to launch a Solana staking ETP in the European Union after encountering regulatory challenges in the US. The firm's strategic move comes on the heels of its acquisition of a European ETP issuer, positioning it for entry into the EU market. Named BSOL, the new ETP will offer staking rewards, distinguishing it from US ETFs, with an estimated annual reward rate of 8%. However, Bitwise's long-term strategy for BSOL remains uncertain amidst regulatory variables.
Bitwise's endeavors to secure a Solana ETF in the US hit a roadblock with regulatory delays, leading to this shift in tactics. While Bitwise is not alone in offering Solana staking rewards in the EU, these products are currently prohibited in the US. The company's interest in the European market could be affected by potential regulatory changes.
Bitwise's groundwork for this move was laid when it acquired a European ETP issuer in August, providing it with a head start to enter the EU market. The decision to offer a Solana staking ETP in the EU is attributed to regulatory challenges in the US.
The new ETP, trading under the name BSOL, will differentiate itself from US ETFs by offering staking returns. Despite US securities laws prohibiting ETFs from providing staking rewards, Bitwise sees an opportunity to stand out. BSOL is expected to offer a reward rate of approximately 8% annually. While Solana's price experienced corrections after the crypto bull market in November, it continues to show signs of bullish momentum.
Bitwise's long-term plan for BSOL is uncertain. It could signify a deeper commitment to the European market if regulatory setbacks persist in the US. Conversely, a more favorable SEC could approve a SOL ETF or permit staking rewards in the US. The variables are currently up in the air.
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