How Did the Bitwise Solana Staking ETF Get Listed During a Government Shutdown?

Against all odds, Bitwise’s historic Solana Staking ETF has managed to defy public expectations and find itself with a New York Stock Exchange listing in the middle of a government shutdown.

$BSOL becomes the first pure spot $SOL ETF to hit Wall Street, with rival issuers like Fidelity and Franklin Templeton seemingly blindsided by Bitwise’s understanding of regulatory fine print.

Will Bitwise’s head start allow the firm to dominate inflows, and how soon can the remaining issuers expect to see their $SOL ETFs go live?

How Did ETFs Get Approved During Shutdown?

When an unexpected Government shutdown dashed hopes of seeing Solana ETFs hit Wall Street in October, manlets and TradFi suits alike were disheartened. It was widely believed and accepted that no listings would come until the lights switched back on in the White House.

Whether through strategic filing amendments or sheer good fortune, Bitwise has been able to get its Solana Staking ETF across the line, with $BSOL scheduled to begin trading today, on October 28, 2028. 

The listing caught most of the financial world off guard. Bloomberg ETF Analysts Eric Balchunas and James Seyffart were bewildered by $BSOL’s surprise launch, which owes its success to a change in language used in the ETF’s filings.

According to Multicoin Capital General Counsel Greg Xethalis, the Bitwise Solana Staking ETF was able to be listed due to the absence of a delaying amendment in its 8-A form.

Where other Solana ETF filings might include a delaying amendment that prevents them from going auto-effective, Bitwise’s 8-A form was amended on October 8th to remove this clause. This essentially enabled the ETF to go auto-effective 20 days from the filing, provided that it met all other criteria.

Pursuant to its listing announcement, Bitwise has also published its $BSOL prospectus. $BSOL has waived fees for its first 3 months, with its expense ratio rising to 0.2% thereafter.

Prospective Issuers Face Tough Decision

Rival issuers with outstanding Solana ETF filings now find themselves in a difficult position. Bitwise has secured itself a significant head start on attracting capital inflows and growing BSOL’s AUM.

In the immediate term, Bitwise boasts something of an unchallenged monopoly amidst pure spot $SOL ETFs. VanEck has since amended its filing to remove the delaying amendment, leading Bloomberg ETF Analyst James Seyffart to assume that “theoretically their 20-day clock starts now?”

While it’s unlikely that making amendments would delay the approvals and listing process should the ongoing government shutdown end, rival issuers face a tough decision. Follow VanEck’s lead and amend current filings to get listed in 20 days, or wait out the government shutdown and return to business as usual?

According to Polymarket data, the majority of traders expect the ongoing shutdown to continue until at least November 16, or 19 days from today.

REX-Shares $SSK Holds its Breath

Solana enthusiasts from all sectors have celebrated the approval and listing of the Bitwise Solana Staking ETF, people would do well to remember that REX-Shares’ hybrid product, $SSK, has been live since July.

Farside Investors data reported that $SSK witnessed no changes to its AUM on October 27, suggesting that investors are yet to make up their mind as to whether they will continue to hold shares in the fund, or pivot to a pure $SOL ETF.

[​​https://x.com/EricBalchunas/status/1983157031298375974]

According to Eric Balchunas, the Bitwise Solana Staking ETF has launched with over $220M in AUM, just over half of $SSK’s $404M. All eyes now turn to $BSOL’s performance over the coming days, as it seeks to take advantage of the rare opportunity provided by regulatory terminology and an enduring government shutdown.

Read More on SolanaFloor

Pure Spot $SOL ETFs are approved

BitWise Solana Staking ETF to go Live Despite Government Shutdown

What’s Better, DATs or ETFs?