Key Takeaways
- Approval from the U.S. Securities and Exchange Commission is still required before the ETF can be launched.
- If approved, the Bitwise Solana ETF would track the price of Solana (SOL),
Bitwise Asset Management has formally taken the first step toward launching a spot Solana exchange-traded fund (ETF), registering a statutory trust in Delaware for the proposed product.
The filing, made on November 20, is a crucial development in the company’s efforts to introduce the ETF to the market. However, approval from the U.S. Securities and Exchange Commission (SEC) is still required before the ETF can be launched. CSC Delaware Trust Company will manage the trust, though the details regarding the ETF’s ticker symbol and the exchange where it would be listed have not yet been disclosed.
If approved, the Bitwise Solana ETF would track the price of Solana (SOL), a leading crypto with a current market capitalization placing it as the fourth-largest digital asset globally. At the time of the filing, Solana is trading at approximately $241.58 per coin, marking a 10% increase in value over the past week. This increase adds to the asset’s overall strong performance, reflecting the growing interest and investment in Solana, driven by its scalability, speed, and low transaction costs.
The registration by Bitwise follows a broader trend of growing institutional interest in crypto ETFs. Bitwise is not the only firm pursuing a spot Solana ETF; other companies, such as VanEck and Canary Capital, have already filed with the SEC, positioning themselves in the race for approval.
Market observers speculate that a spot Solana ETF could be approved as early as 2025. Solana’s increasing popularity among both developers and institutional investors has strengthened the argument for creating an ETF based on the asset, as it has proven to be a reliable blockchain network capable of handling high transaction volumes.
Bitwise, which has successfully launched spot Bitcoin and Ether ETFs that are currently listed on the New York Stock Exchange Arca, has had a good run this year. The firm’s total assets under management (AUM) reached $5 billion by mid-October 2024, marking a significant increase from early 2024. The success of Bitwise’s Bitcoin ETF, which has attracted more than $2 billion in net inflows since its launch, has helped drive much of this growth.
The proposed Solana ETF is part of Bitwise’s broader strategy to expand its cryptocurrency offerings, tapping into growing demand for traditional investment products linked to digital assets.
While the firm faces competition from other asset managers seeking approval for a Solana ETF, the continued rise of Solana’s value and the increasing institutional interest in crypto could help position Bitwise’s product as a viable option. However, the final decision on the ETF’s approval rests with the SEC, and the regulatory agency’s assessment of the product’s compliance and market impact will determine the next steps.
