Bitwise Solana ETF approved for loans at 25% LTV

Bitwise's Solana staking ETF has received approval from a major bank for customers to borrow up to 25% of their shares' value, adding a lending function to the U.S.-listed crypto fund.

Summary

• A major bank has approved BSOL as loan collateral with a maximum 25% LTV.
• Borrowers may receive up to $25 for every $100 in pledged BSOL shares.
• BSOL held 8.18 million SOL worth $622 million as of Aug. 9.
• Bitwise reported a 5.84% net staking reward rate, with 99% of assets staked.

Bitwise co-founder and CEO Hunter Horsley disclosed the approval in an Aug. 11 X post, saying the unnamed bank would let its customers borrow against shares of the Bitwise Solana Staking ETF under a maximum 25% loan-to-value ratio.

Horsley welcomed the bank's decision as another step in crypto's integration with established financial services. His post did not identify the lender or state when the borrowing facility became available.

The disclosure also omitted the interest rate, minimum loan size, repayment period, and account requirements. Neither Bitwise nor the bank has published details on whether the facility applies to retail brokerage customers, private banking clients, or selected wealth-management accounts.

BSOL loans are capped at 25% of collateral value

Under the disclosed limit, a customer pledging $100,000 of BSOL could borrow no more than $25,000. The ETF shares would serve as collateral for the loan while remaining exposed to changes in the value of Solana.

A 25% LTV leaves the bank with $75 in collateral value above every $25 lent at the start of the transaction. The lender's unpublished agreement would determine what happens if BSOL falls, including whether the customer must add collateral, repay part of the balance, or face a sale of pledged shares.

Horsley did not say whether the bank had approved BSOL across its lending platform or only after reviewing an individual customer's portfolio. He also did not disclose whether other Bitwise funds qualify under the same policy.

The loan is secured by exchange-traded shares rather than SOL held in a private wallet. BSOL shareholders do not control the underlying tokens or their private keys, while the bank can value the listed shares using their market price and apply its existing securities-backed lending procedures.

Unlike a sale, borrowing against shares lets an approved customer obtain cash without immediately disposing of the position. According to the Internal Revenue Service, loan proceeds generally do not count as income because borrowers must repay them, although a later sale of collateral may create a taxable transaction.

Bitwise Solana ETF combines SOL exposure with staking

Launched on NYSE Arca in October 2025, BSOL gives U.S. investors direct exposure to SOL through a publicly traded product. Bitwise also stakes nearly all of the fund's tokens so that staking rewards increase the assets supporting its shares.

As crypto.news reported, BSOL recorded $69.45 million in net inflows on its first trading day. The fund entered the market with a 0.20% management fee and a structure designed to track SOL's value alongside rewards generated through the Solana network.

At its launch, Horsley described the product's two main features in a Bitwise statement:

"Investors like growth potential, and investors like staking rewards. BSOL provides low-cost exposure to both."

Bitwise's official fund data showed that BSOL held 8,184,971.62 SOL with a market value of $622.02 million as of Aug. 9. Each share represented about 0.136735 SOL, while the fund's holdings consisted entirely of the token.

BSOL reported a net asset value of $10.39 per share and a market price of $10.41 on the same date. The two-cent difference placed the shares slightly above the reported value of their underlying assets.

Staking covered 99% of the fund's SOL holdings, compared with Bitwise's target of 100%. The gross annualized staking reward rate averaged 6.21% over the preceding 90 days, while the net rate after staking-related fees stood at 5.84%, according to data published by the fund.

Bitwise states that staking rewards can change and do not represent BSOL's investment performance. Movement in SOL's market price can outweigh the tokens earned from staking, leaving shareholders exposed to substantial losses even when the fund continues to earn rewards.

BSOL added capital despite Solana's first-half decline

BSOL drew $267.1 million in net subscriptions during the first half of 2026, according to its Aug. 7 quarterly filing with the U.S. Securities and Exchange Commission. Share issuance lifted the fund's SOL holdings from about 5.15 million tokens at the end of 2025 to approximately 8.05 million by June 30.

Falling SOL prices still reduced BSOL's net assets from $641.3 million to $592.3 million over the six-month period. Its net asset value per share dropped from $16.37 to $10.01, producing a negative 38.85% NAV return for the half-year.

The filing recorded $19.2 million in gross staking rewards and approximately $17.7 million in net investment income after expenses. Portfolio losses reached about $333.8 million, including $262.9 million in unrealized depreciation and $70.9 million in realized losses.

Earlier coverage of ETF demand found that BSOL controlled roughly 81% of assets accumulated by U.S. spot Solana funds by mid-May. Combined assets across products issued by Bitwise, Fidelity, and Grayscale had reached approximately $1.06 billion, although SOL continued to fall during the period.

BSOL had already crossed $500 million in assets within its first 18 trading days, according to Bitwise. Its first recorded daily withdrawal arrived on Dec. 15, when investors removed $4.6 million after a run of inflows that began with the fund's October debut.

U.S. investors gain another use for listed crypto funds

For American investors, the bank's approval adds BSOL to the securities that at least one lender accepts for collateralized borrowing. The policy does not mean the SEC or another federal regulator has approved BSOL specifically for loans, and Horsley's post did not identify any regulatory decision tied to the bank's action.

BSOL is structured as an exchange-traded product under the Securities Act of 1933. Bitwise's disclosures state that it is not an investment company registered under the Investment Company Act of 1940, leaving shareholders without some protections that apply to conventional registered ETFs and mutual funds.

The fund uses Coinbase Custody Trust Company to hold its SOL, according to its SEC filing. Bitwise Onchain Solutions, supported by Helius technology, handles staking, while BNY Mellon provides cash custody and transfer-agent services.