The Bitwise Solana Staking ETF (BSOL) is offering a significantly higher staking yield than its counterpart, the iShares Ethereum Trust ETF (ETHA). While ETHA provides pure institutional exposure to ether but cannot stake the underlying asset due to regulatory restrictions, BSOL stakes nearly 100% of its SOL holdings and delivers over 7% annually. This makes it an attractive option for investors seeking a higher yield from their cryptocurrency investments.
In contrast, ETHA has seen significant outflows in recent months, with $11.316 billion in cumulative net inflows since launch. However, the fund's inability to stake its underlying assets means that holders are missing out on potential earnings of 3-4% annually. BSOL, on the other hand, generates staking revenue and earns approximately 93,965 SOL in staking rewards.
While both ETFs have seen significant price declines this year, with BSOL down 37.68% YTD and ETHA down 40.39% YTD, the staking yield offered by BSOL is a significant draw for investors seeking to maximize their returns. However, it's essential to note that swapping from ETHA to BSOL comes with risks, including potential losses on taxes due to the recent price action.