Bitwise Solana ETF Gains Loan Approval with 25% LTV

Bitwise Solana ETF Approved for Lending

Bitwise has secured approval from a major bank to allow customers to borrow against their holdings in the Bitwise Solana Staking ETF (BSOL) at a 25% loan-to-value (LTV) ratio. This development introduces a new lending function to the U.S.-listed crypto fund.

Key Loan Details

The agreement permits borrowers to access funds amounting to up to $25 for every $100 pledged in BSOL shares. As of August 9, BSOL held approximately 8.18 million SOL, valued at around $622 million.

Bitwise co-founder and CEO Hunter Horsley announced this milestone in a social media post on August 11, expressing optimism about further integrating crypto into mainstream finance. However, details regarding the bank’s identity, interest rates, minimum loan amounts, and repayment terms have not been disclosed.

Collateral Requirements and Risks

Under the set limits, a customer who offers $100,000 of BSOL shares as collateral could borrow no more than $25,000. The ETF shares will serve as collateral, and customers remain exposed to fluctuations in Solana’s market value. If BSOL’s price declines, the bank’s lending agreement will dictate actions such as the requirement for additional collateral or partial repayment.

Understanding BSOL’s Structure

The loan will be secured against exchange-traded shares rather than SOL tokens held in private wallets. Investors in BSOL do not have control over the underlying SOL tokens; hence, the bank can assess the listed shares’ market value through its existing securities lending procedures.

This borrowing mechanism allows a customer to obtain liquidity without selling their investment outright. According to IRS guidelines, loan proceeds are typically not treated as taxable income, assuming repayment is made, though later liquidation of collateral may trigger taxable events.

Background on BSOL ETF

Launched in October 2025, the Bitwise Solana ETF offers investors direct access to SOL through a publicly traded format. Nearly all of its holdings are currently staked to enhance associated rewards. The fund debuted with significant interest, recording $69.45 million in net inflows on its first trading day.

By August 9, the estimated net asset value (NAV) of BSOL was noted at $10.39 per share, indicating slight premiums over its underlying asset value. Despite a challenging market for Solana in the first half of 2026, BSOL reported substantial net subscriptions totaling $267.1 million.

Looking Ahead

The bank’s approval to utilize BSOL as loan collateral signifies another layer of financial tool availability for U.S. investors. However, it should be noted that the SEC has not specifically sanctioned BSOL for lending, and the fund operates under a different regulatory framework compared to conventional registered ETFs.