Bitwise Asset Management is working with fintech firm Superstate on a system that could let shareholders hold selected Bitwise fund shares in tokenized form on a blockchain, while retaining the same legal rights and existing ways of buying the funds through conventional channels.
The Bitwise Solana Staking ETF, which trades under the ticker BSOL, is being considered as the first potential fund for the structure. Bitwise cautioned that there is no assurance the tokenized version will be launched.
The proposed arrangement would not create a separate fund or change the underlying portfolio strategy. Instead, it would alter the recordkeeping method for a shareholder who elects to use the blockchain option. A holder could continue to own shares through the traditional book-entry system at The Depository Trust Company, or have ownership recorded through blockchain infrastructure administered by Superstate’s transfer agency system.
That approach places the initiative closer to a modernization of fund ownership records than a plan to move ETF trading entirely onto public blockchains. Tokenized holders would receive the same rights as holders whose shares are recorded through conventional book-entry processes, according to Bitwise. Yet those blockchain-recorded shares would not be freely transferable beyond the system built for the program.
bsol is under consideration for the first tokenized fund
BSOL is a logical candidate for an onchain ownership experiment because it already connects a regulated fund structure with an asset class whose infrastructure operates on blockchains. The fund’s proposed tokenization would give eligible shareholders a blockchain-based method of holding a security linked to Solana staking, without requiring the security itself to become a freely circulating crypto token.
Superstate would provide the infrastructure for compliant issuance, ownership records and integration with onchain markets. Transfer agents play a central role in securities administration by maintaining official shareholder records and processing changes in ownership. In the proposed model, Superstate’s infrastructure would need to keep the blockchain record aligned with the fund’s official share register.
The restriction on transfers is central to how the structure is being designed. Public blockchain tokens can usually move between wallets without a central intermediary, but tokenized fund shares must continue to meet securities-law, shareholder-record and fund-administration requirements. Limiting transfers to a controlled system would allow Bitwise and Superstate to offer an onchain holding option while preserving the processes needed to identify owners and maintain accurate records.
That constraint also means a tokenized BSOL share, if launched, would differ from a typical cryptocurrency that can be sent to any compatible wallet. Shareholders considering the option would need to understand where transfers are permitted, how redemptions or sales would work, and whether a broker supports the relevant process.
existing purchase channels would remain in place
Bitwise said shareholders would retain the same purchasing channels regardless of whether their ownership is maintained in book-entry form or tokenized form. The company’s framework therefore appears designed to give holders a choice rather than push existing brokerage-account shares onto a blockchain.
Traditional ETF ownership commonly relies on a chain of brokers, custodians and securities depositories. A blockchain record could reduce some reconciliation work between parties if the system creates a shared, updated ownership ledger. The practical benefit would depend on the final design, including how brokers, transfer agents and custodians connect to the system.
Bitwise did not say that tokenized shares would trade continuously, settle instantly, or bypass the established market infrastructure used for ETF purchases and sales. Its description instead centers on a parallel form of recordkeeping for selected fund shares. That is a narrower proposition, but one that could be easier to fit within existing securities frameworks than a fully open, peer-to-peer token market.
For shareholders, identical legal rights would be a necessary feature. Holding an asset on a blockchain is of limited value if the holder receives different economic terms, voting rights, redemption rights or disclosure access from holders using the standard system. Bitwise said the tokenized and book-entry forms are intended to carry the same rights.
bitwise pursues tokenization after workforce reduction
The announcement comes shortly after Bitwise confirmed a 14% staff reduction that brought its global headcount to 155. Hunter Horsley, Bitwise’s chief executive officer, discussed the cuts in connection with the firm’s operating plans.
Bitwise reported more than $9 billion in client assets and more than 70 investment products. The company has expanded beyond products tied directly to Bitcoin and Ethereum as asset managers compete to offer regulated access to areas including staking, digital-asset equities and blockchain infrastructure.
The Superstate partnership gives Bitwise a way to test tokenized fund ownership without building a transfer agency and onchain securities-record system internally. Superstate specializes in helping issuers and asset managers place securities on blockchain rails while maintaining the controls required for regulated products.
Tokenization has attracted asset managers because it could make ownership records more programmable and potentially streamline administrative processes. Its benefits are less immediate for a shareholder who simply buys and sells ETF shares through a regular brokerage account. The first test for any Bitwise launch will be whether the onchain option offers a practical advantage while preserving the liquidity, protections and operational reliability associated with the conventional fund structure.
For now, BSOL remains a potential first use case rather than a confirmed tokenized product. Bitwise’s proposal gives the firm an avenue to bring blockchain-based ownership records into a regulated fund format, but the final rules on eligibility, transfer limits and operational access will determine how useful that option becomes for shareholders.
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