Bitwise CEO Hunter Horsley said Solana could get an edge to Ethereum in the Staking Exchange-Traded Fund (ETF) market, pointing its design as more favorable for investors.
Speaking with cointelegraph editor Andrew Fenton, at token2049 in Singapore, Horsley argues that Solana’s faster unstable period gives Ethereum an advantage. For example, the removal of Ethereum’s queue recently reached the new highs, while Solana usually removes faster. Horsley said the differences were different for those who gave it to the owners who should be restored to investors quickly.
“It’s a big problem,” Horsley said. “The ETFs have to get the property back in a very short time. So this is a big challenge.”
Staking involves cryptocurrency locking to help secure a network in exchange for rewards paid in the same token. Since the property is locked, retreats can deal with delays while changing based on network demand.
https://www.youtube.com/watch?v=_gbfudrmny0
Horsley noted that Ethereum -based products could work around the issue. For example, Bitwise’s Etaking Staking Exchange-Trading (ETP) product in Europe uses a credit facility to maintain the redemption liquid. Such facilities, however, cost and have “capacity barriers,” he said.
Another alternative is Liquid staking tokens Like Lido’s Steth, which represents staked assets and allows investors to remain liquid while still earning rewards.
Horsley’s comments followed Ethereum’s staking entry Up to 860,369 ETH in early September, the highest level since 2023.
The Eth Staking Queue is currently standing in 201,984 ETH, with an average wait time of nearly three days. The exit queue is longer, approximately 34 days, with more than 2 million staked tokens waiting for removal, according to Onchain Data.
Related: NASDAQ FILES APPLICATION TO ADD STAKING FOR BLACKROCK ISHARES ETH ETF
Sol and Eth ETF faced October deadlines
The US Securities and Exchange Commission (SEC) is set to decide on some pending applications for funds that Solana and Ethereum have exchanged funds in the coming weeks, including proposals with staking features.
Among them are Solana ETFs from Bitwise, Fidelity, Franklin Templeton, Coinshares, Grayscale investments, Canary Capital, and Vaneck-all of which have filed S-1 documents with the SEC to update their existing funding provisions.
In August, the SEC delayed decisions to approve ether staking in two ETFs from Grayscale to the end of October.
Approval of staking for Blackrock’s ishares Ethereum Trust was also pushed back on October 30th.
As Cointelegraph recently reported, 16 Crypto -related funds is waiting for decisions from the SEC this month.
