Bitwise explores tokenizing Solana staking ETF through Superstate partnership

Bitwise Asset Management is exploring a move to put its investment funds on a blockchain through a new partnership with fintech firm Superstate.

The companies are developing a framework that could allow investors to hold tokenized versions of certain Bitwise fund shares. The Bitwise Solana Staking ETF (BSOL) is expected to be the first fund considered for tokenization, although Bitwise stressed that there is no guarantee the product will launch in tokenized form.

Bitwise explores blockchain-based fund ownership

Under the proposed framework, tokenization would change how ownership of fund shares is recorded, rather than changing the rights attached to those shares.

Investors would still have access to the same investment and purchasing channels. The main difference would be the way ownership is recorded.

Investors could choose between traditional book-entry ownership through The Depository Trust Company (DTC) or a tokenized version recorded on a blockchain through Superstate's transfer agency infrastructure.

In simple terms, the fund share would remain the same, but its ownership record could be maintained on a blockchain.

Bitwise said tokenized shares would carry the same shareholder rights as shares held through the traditional system.

However, the tokenized shares would not be freely transferable outside the blockchain-based system.

Why the Solana ETF could be the first

The Bitwise Solana Staking ETF is currently the first fund identified for the proposed tokenization framework.

That makes the product an interesting test case for bringing traditional investment products closer to blockchain infrastructure.

The ETF provides exposure to Solana while incorporating staking into its structure. Tokenizing its shares could give investors another way to record and manage ownership without changing the underlying rights of the investment.

However, investors should not interpret the announcement as confirmation that a tokenized BSOL product is coming soon.

Bitwise explicitly said there is “no assurance” that the tokenized fund will launch. The companies are still developing the framework.

Superstate brings securities onchain

Superstate specializes in bringing traditional securities onto blockchain networks.

The company works with issuers and asset managers on areas including compliant issuance, recordkeeping and onchain market infrastructure.

For Bitwise, the partnership could provide a way to combine its existing fund products with blockchain-based ownership records without requiring investors to give up the protections and rights associated with conventional fund shares.

Bitwise manages more than $9 billion in client assets across more than 70 investment products, according to the announcement.

That gives the potential tokenization effort a much larger significance if the framework eventually expands beyond the Solana staking ETF.

Bitwise continues restructuring

The announcement comes shortly after Bitwise confirmed that it had reduced its workforce by 14%. The cuts brought the company's global headcount down to 155 employees.

Bitwise CEO Hunter Horsley said the restructuring would help position the company for continued growth.

The tokenization initiative therefore comes as Bitwise continues to adjust its business while expanding its involvement in blockchain-based financial infrastructure.

For now, the key development is that Bitwise is exploring a blockchain-based ownership system for its investment funds, with its Solana staking ETF potentially becoming the first example.

If launched, the structure could offer investors a new way to hold traditional fund shares while keeping the same underlying shareholder rights.