The battle for the American crypto investor is starting. Both Bitwise and 21Shares have significantly boosted their funds for Ethereum (ETH) and Solana (SOL).
In the meantime, we have to wait for white smoke from Washington before a whole procession of crypto coins can head to Wall Street.
Bitwise ‘doesn’t play games’ with Solana fund
Crypto asset manager Bitwise already offers funds for Bitcoin (BTC) and Ethereum, but is about to launch many more spot Exchange-Traded Funds (ETFs).
What are spot ETFs?
These are stock exchange funds that directly follow the current market prices of one or more assets. The fund actually buys the underlying asset(s). This way, investors gain exposure to Bitcoin, for example, via the stock exchange, without having to own the currency themselves.
The company is busy with funds for Solana, Ripple (XRP), Dogecoin (DOGE) and recently also Chainlink (LINK). It has now added staking for its Solana application. The purchased coins are therefore used to keep the network running and secure. The fund thus earns extra Solana coins, which are then passed on to all investors.
It has now also become clear that Bitwise charges 0.20 percent in management fees. It is lower than most competitors, which hover between 0.21 and 0.25 percent.
This is the percentage that a fund charges annually to cover the costs of management, administration and storage.
According to Eric Balchunas, ETF analyst at Bloomberg, it is a strategic move:
“Bitwise doesn’t play games,” he wrote on X. “Low fees historically attract more investors.”
In addition, Bitwise is temporarily eliminating the fee entirely for the first three months, up to $1 billion in assets under management.
21Shares follows with Ethereum staking
21Shares is also adding staking to its existing Ethereum fund. And the 0.21 percent management fee will be completely waived for one year, starting on October 9.
With this adjustment, 21Shares is following the example of Grayscale, which was the first to add strikes to its two Ethereum funds last week. In a statement, it is called “a logical next step in the development of regulated Ethereum products.”
Canary Capital also filed final adjustments for its Litecoin (LTC) and Hedera (HBAR) funds this week. According to analyst Balchunas, this is usually “the last step before launch”.
However, there is still some sand in the machine: due to the shutdown of the American government, the SEC is currently running at low capacity. Only urgent matters are handled, which is why new ETF approvals have been temporarily postponed.
Source: https://newsbit.nl/etf-uitgevers-maken-ethereum-en-solana-fondsen-aantrekkelijker/
