Solana : Solana ETF Issuers Add Staking to S-1 Filings After SEC Instruction

TLDR

• Bitwise, Canary, and Grayscale have amended their Solana ETF filings to allow staking of Solana tokens.
• The updated S-1 forms introduce Trust Staking Accounts that permit the funds to earn rewards from staking.
• Staking rewards may be received in Solana tokens or cash and are considered income to the trust.
• Coinbase Custody will manage all staking operations securely on behalf of the ETF holders.
• Grayscale has added a condition that must be met before staking can begin in its ETF structure.

Solana ETF issuers have amended their S-1 filings to include staking features following instructions from the SEC. Bitwise, Canary, and Grayscale updated their proposals to allow the staking of Solana tokens that are held in custody. This change adds a new income-generating element to the Solana ETFs through staking rewards, which may benefit shareholders.

Solana ETFs Introduce Trust Staking Accounts

The amended filings from Bitwise and Canary now include designated Trust Staking Accounts to manage staked Solana. These accounts permit the staking of Solana and allow the funds to earn rewards, either in SOL or cash. The trust recognizes this income, which may improve the ETF’s net asset value over time.

Staking rewards may be distributed directly to the fund, offering additional returns without requiring investors to stake themselves. The process is managed securely through Coinbase Custody, which holds and operates the Solana tokens. This arrangement ensures investor exposure to staking without any technical responsibilities.

By incorporating staking, the ETFs provide more utility from Solana assets while maintaining compliance with SEC requirements. The updated structure reflects growing interest in adding yield features to crypto funds. This also marks a shift from simple price tracking to active participation in blockchain ecosystems.

Grayscale Filing Adds Conditional Staking Feature

Grayscale’s amended filing takes a more cautious approach, allowing staking only when a specified condition is met. This “Staking Condition” must be satisfied before the trust can participate in any staking activities. If activated, staking will still follow additional safeguards and procedures set out in the filing.

The same document disclosed a 2.5% management fee, which is higher than average among ETFs in traditional markets. However, some investors may accept the fee for regulated staking access and a simplified process. The filing shows Grayscale intends to balance investor returns with operational controls and clear conditions.

Although the staking clause is conditional, it aligns Grayscale with peers who are expanding ETF functions. The inclusion of staking demonstrates how the ETF landscape is adapting to broader blockchain capabilities. This could attract more institutional and traditional investors to Solana exposure.

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Solana Activity Rises Ahead of ETF Decision

The amendments reflect a structural shift in U.S.-based crypto ETFs toward more active asset management. Staking introduces a yield component that enhances fund performance beyond simple price movement. ETF issuers are now offering more utility without compromising regulatory standards or investor protection.

The new filings may influence how regulators design and evaluate future crypto ETFs. Increased activity around Solana, including today’s $628 million transfer, may suggest investor anticipation. If approved, these would be the first U.S. ETFs to offer regulated Solana staking exposure.