Bitwise Files for Solana (SOL) ETF as Crypto Market Optimism Grows

Crypto asset manager Bitwise has taken a significant step in expanding its exchange-traded fund (ETF) offerings by filing for a Solana (SOL) ETF in Delaware.

Delaware: Crypto asset manager Bitwise has filed for a Solana (SOL) exchange-traded fund (ETF) in Delaware, offering institutional and retail investors exposure to the blockchain platform.

The filing, confirmed by Bitwise CEO Hunter Horsley, comes amid growing optimism in the crypto market, fueled by recent political developments and a surge in Solana’s price.

If approved, the ETF will provide a convenient and regulated avenue for investors to gainкосвенный exposure to Solana, a blockchain renowned for its speed, scalability, and developer-friendly ecosystem.

Currently, Solana (SOL) ranks as the fourth-largest cryptocurrency by market capitalization and has seen its price climb to over $255, inching closer to its all-time high of $259 set in 2021.

The increasing popularity of crypto ETFs

ETFs have emerged as a preferred investment tool to gain indirect exposure to cryptocurrencies, and Bitwise has already achieved success with its Bitcoin and Ethereum ETFs, both of which are listed and traded on US stock exchanges.

The addition of Solana will further expand Bitwise's product lineup, capitalizing on the rising interest in blockchain technologies beyond Bitcoin and Ethereum.

Solana's blockchain has garnered attention for hosting a range of decentralized applications (dApps), games, and meme coins, and its utility has drawn comparisons to Ethereum, especially due to its faster and cheaper transactions. This usability has attracted both developers and investors, driving the demand for financial products tied to Solana's performance.

Optimism for Solana ETF approval grows amid political developments

The timing of the filing is noteworthy, coinciding with heightened optimism in the market, largely driven by recent political developments in the United States.

The election of former President Donald Trump has raised hopes for a more crypto-friendly regulatory environment, considering his campaign's pro-crypto stance.

Moreover, the announcement of SEC Chair Gary Gensler's planned resignation on January 20, 2025, to coincide with the start of Trump's second term, has further fueled this optimism.

Anticipations are that an SEC Chair appointed by Trump will adopt a favorable approach toward crypto assets, potentially clearing the path for the approval of spot ETFs linked to digital currencies such as Solana.

Multiple other firms have filed for Solana ETFs

It's worth noting that Bitwise is not the only entity pursuing a Solana ETF. Several other major asset managers, including Canary Capital, VanEck, and 21Shares, have also filed for similar products.

Previously, Solana ETFs were considered a challenging prospect due to the SEC's classification of Solana as an unregistered security, but shifts in the regulatory landscape appear to have altered these expectations.

While the filing in Delaware marks an early stage in the approval process, Bitwise will still need to submit further materials to the SEC before the fund can become a reality.

However, the approval of Bitcoin spot ETFs earlier this year showcased the SEC's engagement with crypto-based investment products, and the market will be watching closely to see if Solana follows suit.

With political winds changing and Solana surging, the upcoming months are poised to be pivotal for both the asset and the broader market.