Solana May Outpace Ethereum in Staking ETF Race
Bitwise CEO suggests Solana’s faster unstaking gives it an edge in the staking ETF race over Ethereum.
- Solana’s unstaking period is much shorter than Ethereum’s.
- Bitwise CEO sees this as key for ETF approval.
- Faster liquidity could attract institutional investors.
Bitwise CEO Hunter Horsley has pointed to a critical factor that could give Solana an advantage over Ethereum in the race for a staking-based exchange-traded fund (ETF): its much shorter unstaking period.
Unlike Ethereum, which requires a waiting time of around 21 days to unstake tokens, Solana allows users to unlock their staked assets in just 2–3 days. According to Horsley, this difference could play a vital role in shaping how regulators view staking-based ETFs.
Speed matters in the financial markets. The shorter unstaking window means more flexibility and liquidity — two traits that are particularly attractive to institutional investors and ETF issuers alike.
Why It Matters for ETF Approval
ETFs require assets to be highly liquid and easily redeemable. Ethereum’s lengthy unstaking period may be seen as a drawback in this context. Solana, with its quicker turnaround, could present fewer risks and higher efficiency when it comes to managing redemptions or market shifts.
Horsley’s comments reflect the increasing attention Solana is receiving as more than just an “Ethereum alternative.” It’s now being evaluated on its technical and structural strengths in financial products.
The potential for a Solana staking ETF could signal a significant shift in market perception and adoption. While Ethereum remains dominant in DeFi and smart contracts, Solana’s practical advantages in staking operations may earn it a first-mover edge in this new ETF frontier.
Institutional Eyes on Solana
The ETF race is more than just a regulatory challenge — it’s a battle for investor trust and convenience. Solana’s faster exit option could make it more appealing for asset managers who need quick access to liquidity.
While no staking ETF has yet been approved in the U.S., the discussion highlights how technical differences between blockchains can have real financial implications. If Solana is first to market with a staking ETF, it could solidify its position as a leading layer-1 contender alongside Ethereum.
