Solana Could Gain Edge Over Ethereum in Staking ETF Race Ahead of SEC October Decisions

Solana staking ETF: Solana’s much shorter unstaking window can reduce redemption delays, giving Solana-based staking ETFs a practical advantage over Ethereum products when issuers must return assets quickly during high ￰0￱ unstaking on Solana reduces redemption risk for staking ETFs. Ethereum’s long exit queue and recent spikes in pending withdrawals create potential liquidity and cost challenges for ETF ￰1￱ data shows Ethereum’s exit queue measured in millions of ETH, increasing average exit times and pressure on fund ￰2￱ staking ETF advantage: Solana’s faster unstaking can ease ETF redemptions ahead of October SEC decisions — read analysis and implications ￰3￱ gives Solana an edge over Ethereum for staking ETFs?

Solana staking ETF proponents argue the network’s shorter unstaking period lowers redemptions risk, enabling issuers to return assets ￰4￱ operational difference matters for ETFs that must meet redemption timelines and reduces reliance on costly liquidity ￰5￱ do unstaking periods affect ETF redemptions? Unstaking periods determine how quickly an issuer can convert staked assets back to liquid tokens for investor redemptions. Ethereum’s exit queue has grown substantially — early September saw an entry queue peak near 860,369 ETH, while exit backlogs exceeded two million ETH, producing average wait times measured in ￰6￱ contrast, Solana’s unstaking typically clears faster, lowering the probability of delayed redemptions and the need for expensive credit facilities or complex liquidity ￰7￱ data and issuer statements highlight these operational differences as a major consideration for product design and investor protection. , "description": "Bitwise CEO Hunter Horsley says Solana’s shorter unstaking period gives it an advantage over Ethereum in the staking ETF race as the SEC readies October rulings." Bitwise CEO Hunter Horsley says Solana’s shorter unstaking period gives it an advantage over Ethereum in the race for staking ETFs, as US regulators prepare key decisions in ￰8￱ CEO Hunter Horsley said Solana may gain an edge over Ethereum in the staking exchange-traded fund (ETF) market, pointing to Solana’s design as more favorable for issuers who must meet tight redemption ￰9￱ at Token2049 in Singapore, Horsley emphasized that Solana’s quicker unstaking window can materially reduce ￰10￱ noted that Ethereum’s withdrawal queue recently reached new highs and that extended exit backlogs create meaningful operational challenges for ETF issuers.

“It’s a huge problem,” Horsley said. “The ETFs need to be able to return assets on a very short time ￰11￱ this is a huge challenge.” Staking requires locking tokens to secure a network and earn ￰12￱ assets face withdrawal timing constraints that vary by protocol and network ￰13￱ constraints directly affect an ETF issuer’s ability to honor redemptions without maintaining large liquidity ￰14￱ explained that Ethereum-based products can use alternatives — for example, credit facilities to fund redemptions or liquid staking tokens such as stETH — but those workarounds carry costs and capacity ￰15￱ cited Bitwise’s European Ethereum staking ETP approach that uses a credit facility to preserve redemption liquidity as an example of necessary mitigation.

Horsley’s remarks follow onchain metrics that tracked the Ethereum staking entry queue near 860,369 ETH in early September and showed the current ETH staking queue at 201,984 ETH with an average wait of about three days for ￰16￱ exit queue has been longer, with figures indicating more than 2 million staked tokens awaiting withdrawal, translating into average exit times measured in ￰17￱ will the SEC decide on SOL and ETH ETFs? The ￰18￱ and Exchange Commission is scheduled to make decisions on multiple pending Solana and Ethereum ETF filings in ￰19￱ asset managers amended S-1 filings to include staking provisions as they prepare for regulatory ￰20￱ proposals referenced in filings include applications from Bitwise, Fidelity, Franklin Templeton, CoinShares, Grayscale Investments, Canary Capital, and VanEck for Solana ETFs with staking ￰21￱ SEC delayed decisions on certain Ether staking approvals to late October; BlackRock’s iShares Ethereum Trust staking approval was pushed to Oct. 30.