Bitwise explores on-chain tokenization of its Solana staking ETF via Superstate partnership, signaling potential expansion of tradable crypto ETFs
Executive summary: Bitwise Asset Management partnered with Superstate to explore tokenizing its Solana staking ETF (BSOL), enabling the ETF to be represented on-chain. This move could pioneer a new model for crypto ETFs, increasing accessibility for on-chain investors and potentially triggering broader adoption across the ETF industry.
Who is involved: Bitwise Asset Management (crypto asset manager), Superstate (financial technology firm specializing in on-chain securities), and the Solana blockchain.
Likely next: Bitwise and Superstate will develop technical capabilities; if successful, other ETF issuers may pursue similar tokenization efforts for crypto or traditional ETFs.
Bitwise Asset Management announced a collaboration with Superstate to develop tokenization capabilities for its Bitwise Solana Staking ETF (BSOL), aiming to bring the ETF on-chain. The initiative reflects growing interest in merging traditional ETF structures with blockchain technology to enhance accessibility and liquidity. No financial terms or timelines were disclosed in the announcement.
Timeline
- — Bitwise To Explore Tokenizing Bitwise Solana Staking ETF (BSOL) With Superstate; Other ETFs May Follow (PR Newswire)
- — The Broad Market ETF That Belongs in Almost Every Passive Investor's Portfolio (Yahoo Finance)
- — From Chinese AI to Global ETFs: STARTRADER Launches New 24/7 Stock and ETF CFDs (PR Newswire)
Analysis — what this means
Likely next events
- Q4 2026: Bitwise and Superstate expected to release technical proof-of-concept for BSOL tokenization
- H1 2027: Potential launch of tokenized BSOL on public blockchain if development milestones met
- Ongoing: SEC scrutiny likely if tokenized ETFs begin trading on decentralized exchanges
Sectors affected
- Cryptocurrency exchange-traded products
- Blockchain-based financial infrastructure
- On-chain asset management
Regulatory implications
- SEC may evaluate whether tokenized ETFs constitute securities under existing federal law
- FINRA could issue guidance on custody and trading of on-chain ETF shares
- IRS may need to clarify tax treatment of staking yields in tokenized ETF wrappers
Historical parallels
- Launch of first Bitcoin ETF (ProShares BITO, October 2021) – paved way for crypto ETF adoption
- Introduction of tokenized money market funds on blockchain (e.g., Franklin OnChain U.S. Government Money Fund, 2021)
- NYSE’s early experiments with blockchain-based stock settlements (2018–2020)
Key entities
Sources
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