Solana ETFs in the spotlight: Bitwise's BSOL to debut on NYSE on Tuesday

Bitwise is next up to the plate as it plans to launch its exchange-traded product tracking Solana, the sixth-largest cryptocurrency by market capitalization.

In a post on X on Monday, the asset management firm said it would debut its Bitwise Solana Staking ETF, the first of its kind, with the ticker symbol BSOL on the New York Stock Exchange on Tuesday. The firm said it is the first ETP to have "100% direct exposure to spot SOL."

"Solana is headed into the mainstream—and we think it’s just getting started," Bitwise said.

Kristin Smith, president of the Solana Policy Institute, spoke about the significance behind the launch.

“The launch of the first spot Solana ETP in the US, BSOL, demonstrates broad recognition of Solana’s role as critical financial infrastructure for the future of the digital economy," Smith said in a statement. "The rails of global finance are being rebuilt with Solana at the center and investors will now have access to it."

This comes as other firms plan to debut an array of crypto ETFs. Canary Capital has said it plans to list its Litecoin ETF and HBAR ETF on Nasdaq on Tuesday. The Grayscale Solana Trust ETF plans to launch on Wednesday, a person familiar told The Block earlier.

On Monday, managing partner at Multicoin Capital Kyle Samani posted on X announcing the launch of the Bitwise SOL Staking ETF, but then later deleted the post.

How ETFs can launch during a government shutdown

The U.S. is now close to entering its second month of being shut down after Congress failed to approve funding. That leaves the SEC operating under its shutdown plan, which significantly limits what staff can work on as many are furloughed.

A week after the shutdown, the agency released guidance clarifying procedures for firms seeking to go public. In it, the SEC said that if firms want to go public, they can file an S-1 registration statement without what's called a delaying amendment, according to a person familiar with the process. A delaying amendment means the ETF wouldn’t go into effect after 20 days, allowing the SEC time to work through comments.

As firms file their final S-1s, that means that within 20 days, they can go effective.

Before the shutdown, the SEC approved listing standards proposed by three exchanges, asking the agency to change a rule governing the trading and listing of commodity-based trust shares, which sets out specific requirements to have certain shares listed on their exchanges. The approval means dozens of crypto ETF applications could go live more quickly.

Firms looking to launch crypto ETFs without the SEC's sign-off need to meet the listing standard, a person familiar said earlier.

To launch, firms need a final S-1 registration statement and a Form 8-A, some of which have already begun trickling in. It is unclear how many issuers are going through this process and how many more crypto ETFs could launch soon.

Updated at 11 p.m. UTC on Oct. 27 to include a statement from Smith