Key Difference Could Define the Next Wave of ETFs

AltcoinsEthereum

The next wave of crypto ETFs may hinge on a technical detail most investors never think about: how quickly a blockchain can release staked tokens.

Bitwise CEO Hunter Horsley, speaking at the Token2049 conference in Singapore, suggested that Solana’s speed in this area could give it an advantage over Ethereum in the race to launch staking-enabled ETFs. According to him, issuers need to guarantee near-instant liquidity when investors want to exit — something Ethereum’s long withdrawal queues make difficult.

Ethereum has faced mounting pressure from its own success. Earlier this month, more than 2 million ETH sat in the withdrawal line, with exit times stretching over a month. Solana, by contrast, typically clears staking requests far faster, which Horsley argued could make it more practical for fund providers.

To cope with Ethereum’s delays, some issuers have turned to workarounds such as credit facilities or liquid staking tokens. While these tools help maintain liquidity, they also introduce costs, limits, and new risks. Horsley described them as patches rather than solutions.

The debate comes as the SEC prepares to rule on multiple ETF filings that include staking features. Proposals tied to Solana have been submitted by firms including Fidelity, VanEck, Grayscale, and Bitwise itself. Ethereum funds are also on the table, though several decisions — including BlackRock’s iShares Ethereum Trust — have already been postponed to the end of October.

With 16 crypto-linked ETFs currently awaiting regulatory review, the outcome could define which networks attract the first wave of mainstream staking products. Horsley’s view is clear: if speed and reliability decide the contest, Solana may have the upper hand.

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Alex is an experienced financial journalist and cryptocurrency enthusiast. With over 8 years of experience covering the crypto, blockchain, and fintech industries, he is well-versed in the complex and ever-evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His approach allows him to break down complex ideas into accessible and in-depth content. Follow his publications to stay up to date with the most important trends and topics.

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Source: https://coindoo.com/solana-vs-ethereum-key-difference-could-define-the-next-wave-of-etfs/