In a bold move that could reshape the cryptocurrency landscape, Bitwise, a leading crypto asset manager, has thrown its hat into the ring to offer a Solana (SOL) exchange-traded fund (ETF) in the United States. The San Francisco-based firm filed the necessary paperwork with the Securities and Exchange Commission (SEC) on Thursday, becoming the fourth major player to vie for a slice of the burgeoning Solana ecosystem.
Bitwise’s entry into the Solana ETF race comes hot on the heels of similar filings by industry heavyweights Canary Capital, VanEck, and 21Shares. The flurry of activity surrounding Solana ETFs is largely attributed to the anticipated return of Donald Trump to the White House in 2025, which has turned once-far-fetched regulatory propositions into plausible realities.
A New Era for Crypto ETFs
The impending departure of current SEC Chair Gary Gensler, who is set to leave the agency on January 20th when Trump is sworn in, has opened the door for a more crypto-friendly regulatory environment. Among the proposals gaining traction is the idea that SOL – the fuel that powers transactions on the Solana blockchain – could soon be wrapped into an ETF, making it easily tradable by Wall Street investors.
Bitwise is no stranger to the ETF game, already offering a range of funds tracking major cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH). The firm has also shown a penchant for taking calculated risks, having previously filed for ETFs tied to more controversial assets such as XRP. Now, with SOL in its sights, Bitwise is positioning itself to capitalize on Solana’s meteoric rise.
Solana’s Star Power
Solana has emerged as one of the standout performers in this year’s crypto market rally, cementing its status as a hub for trading activity, particularly among meme coin enthusiasts. The platform’s native token, SOL, has also been knocking on the door of all-time highs not seen since the peak of the last major crypto boom in late 2021.
Earlier this week, Bitwise signaled its intentions by registering a company in Delaware, a move confirmed by Chief Investment Officer Matt Hougan. While Hougan declined to provide further comment, the filing speaks volumes about the firm’s ambitions in the Solana space.
A $5 Billion Bet on Crypto’s Future
Bitwise actively markets to registered investment advisors in the US, and as of last month, the company reported an impressive $5 billion in assets under management. The proposed Solana ETF, in partnership with exchange operator Cboe, represents a significant portion of that war chest.
While the necessary Form S-1 has yet to be published, the gears are undoubtedly in motion. The crypto community waits with bated breath to see how the SEC will respond to the growing pressure to approve a Solana ETF, and whether Bitwise’s gamble will pay off in the rapidly evolving regulatory landscape.
The Race Is On
As the competition heats up, one thing is clear: the demand for exposure to Solana and its ecosystem is reaching a fever pitch. With industry giants like Bitwise, VanEck, and 21Shares all vying for a piece of the pie, the stage is set for a showdown that could have far-reaching implications for the future of crypto investing.
For now, all eyes are on the SEC, as the crypto world holds its collective breath in anticipation of a decision that could usher in a new era of mainstream adoption. Regardless of the outcome, one thing is certain: the race for a Solana ETF is on, and Bitwise is determined to lead the pack.
