Bitwise files for Solana ETF in Delaware
- Bitwise files for a Solana ETF as SOL nears its all-time high of $259.
- Optimism grows with Trumps election and SEC Chair Gary Genslers resignation.
- Competing firms like VanEck and 21Shares also seek Solana ETF approvals.
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.
The filing, confirmed by Bitwise CEO Hunter Horsley, comes at a time of growing optimism in the crypto market, fueled by recent political developments and a resurgence in Solanas price.
If approved, the ETF will provide institutional and retail investors with exposure to Solana, a blockchain platform renowned for its speed, scalability, and developer-friendly ecosystem.
As of now, Solana (SOL) is the fourth-largest cryptocurrency by market capitalization and has seen its price surge to over $255, approaching its all-time high of $259 recorded in 2021.
The growing trend in crypto ETFs
ETFs have become a popular investment vehicle for providing indirect exposure to cryptocurrencies, and Bitwise has already made its mark with Bitcoin and Ethereum ETFs trading on US stock exchanges.
Solanas inclusion would expand Bitwises product portfolio, capitalizing on the increasing interest in blockchain technologies beyond Bitcoin and Ethereum.
The Solana blockchain has gained prominence for supporting decentralized applications (dApps), games, and meme coins, often compared to Ethereum due to its cheaper and faster transactions. This utility has attracted developers and investors alike, further driving the demand for financial products tied to Solanas performance.
Solana ETF approval optimism driven by political developments
The timing of the filing is noteworthy, as it coincides with heightened market optimism linked to political shifts in the United States. Former President Donald Trumps election has sparked hope for a more crypto-friendly regulatory environment, given his campaigns pro-crypto stance.
This optimism has been further bolstered by the announcement of SEC Chair Gary Genslers planned resignation on January 20, 2025, coinciding with the start of Trumps second term.
Market participants anticipate that a Trump-appointed SEC chair will adopt a more favorable approach toward crypto assets, potentially paving the way for the approval of spot ETFs tied to digital currencies like Solana.
Ripples Chief Legal Officer has made a post on X saying the next SEC chair should End all non-fraud crypto litigation on Day 1, among other thing.
A lot of unsolicited advice on here about who should (or shouldnt) be the next SEC Chair. I trust the transition team to make the right call with these table stakes for crypto in mind:
1.End all non-fraud crypto litigation on Day 1.
2.Get commitments from Commissioners Uyeda andStuart Alderoty (@s_alderoty) November 21, 2024
Several other companies have filed for Solana ETFs
Bitwise isnt the only player eyeing a Solana ETF. Other major asset managers, including Canary Capital, VanEck, and 21Shares, have also filed for similar products.
While Solana ETFs were previously viewed as a challenging proposition due to the SECs classification of Solana as an unregistered security, the changing regulatory landscape appears to have altered these expectations.
Although the filing in Delaware represents an early stage in the approval process, Bitwise will need to submit additional documentation to the SEC before the fund can become a reality.
The approval of Bitcoin spot ETFs earlier this year demonstrated the SECs willingness to engage with crypto-based investment products, and the market is now watching closely to see if Solana will follow suit.
With political winds shifting and Solana surging, the coming months could mark a pivotal moment for both the asset and the broader market.
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