Crypto ETFs Heat Up: Bitwise and 21Shares Introduce Staking Features in the U.S.
Two leading crypto ETF issuers, Bitwise and 21Shares, are expanding their offerings in the U.S. by introducing crypto asset staking, just days after Grayscale became the first to offer staking in its Ethereum ETFs.
Bitwise Launches Solana Staking ETF
In its latest filing, Bitwise has formally renamed its product to the “Bitwise Solana Staking ETF”, incorporating language that allows the fund to “seek exposure to the value of Solana held by the Trust.”
The ETF also introduces a 0.20% unitary management fee, covering all operating costs. This fee will be waived for the first three months on the first $1 billion in assets, making it one of the most competitive fee structures in the U.S. crypto ETF market. For comparison, most competing crypto ETFs charge between 0.21% and 0.25%.
21Shares Enhances Ethereum ETF with Staking
Meanwhile, 21Shares is enhancing its 21Shares Ethereum ETF (TETH) by adding staking functionality. The sponsor fee of 0.21% will be waived for 12 months starting October 9. Federico Brokate, head of U.S. business at 21Shares, described the move as a “natural evolution of Ethereum investment products in the U.S. market,” in a statement.
Why Staking Matters for Investors
By enabling staking, these ETFs allow funds to earn rewards for helping secure blockchain networks like Solana and Ethereum. These rewards are reinvested into the ETF, giving investors the opportunity to earn additional income beyond price appreciation.
Maksim Balashevich, founder and CEO of crypto analytics firm Santiment, told Decrypt that institutional investors will likely focus on “how much of the staking yield will be passed on to them.” For investors holding overlapping positions in Solana and Ethereum treasuries, staking ETFs may provide a simpler way to consolidate yield and manage exposure.
“Yield is the differentiator here,” Balashevich noted. “The competition among ETFs will likely center around this aspect.”
Investor Appeal and Fee Competition
Bloomberg senior ETF analyst Eric Balchunas highlighted Bitwise’s strategy, stating that low fees have a “near-perfect record of attracting investors,” signaling strong inflow potential. While it remains unclear if this could trigger a “fee war” similar to the one seen before U.S. Bitcoin ETFs launched in January last year, the low-cost, staking-enabled ETFs are poised to attract significant investor interest.
Both Bitwise and 21Shares are positioning themselves at the forefront of the U.S. crypto ETF market, leveraging staking rewards and low fees to capture institutional and retail investor attention.
