Bitwise Advances Solana ETF Amid Rising Institutional Interest

By: Isha Das

Bitwise Asset Management has taken a significant step towards establishing a spot Solana exchange-traded fund (ETF). On November 20, the company registered a statutory trust in Delaware through CSC Delaware Trust, indicating plans to seek approval from the Securities and Exchange Commission (SEC) for this financial product. This move aligns with Bitwise’s broader strategy to expand its range of cryptocurrency offerings.

Hunter Horsley, CEO of Bitwise, confirmed the Delaware registration was a key preliminary step for launching a Solana ETF, although further specifics remain undisclosed. The registration forms part of a larger plan where the firm will need to submit detailed financial documentation—specifically 19b-4 and S-1 forms—as part of its bid for SEC approval. Should the proposal be sanctioned, the Bitwise Solana ETF would closely track Solana's market price, thereby enabling investors to gain indirect exposure to this rapidly ascending digital asset, which now stands as the fourth-largest cryptocurrency by market capitalization.

The decision to pursue a Solana ETF is underscored by the digital asset's impressive 354% surge over the past year, a growth driven largely by burgeoning institutional interest. The ETF landscape surrounding Solana is becoming increasingly competitive with other financial entities like VanEck and Canary Capital also setting sights on similar products. As Solana continues to gain prominence, industry experts speculate that the first ETFs focusing on this digital coin might become operational by as early as 2025, following the template set by existing Bitcoin and Ethereum spot ETFs.

Bitwise’s recent actions, including the Solana Trust registration, are part of a significant expansion effort. The company has seen its assets under management (AUM) swell to $5 billion by mid-October, marking a 400% increase since the start of the year. Notably, Bitwise’s spot Bitcoin ETF has been instrumental in attracting substantial net inflows totaling over $2 billion since its introduction. In further diversifying its portfolio, Bitwise has acquired Attestant, a London-based non-custodial Ethereum staking services provider, pushing its total managed assets above $10 billion. This acquisition emphasizes Bitwise’s ambition to cement itself as a key player in the burgeoning crypto-financial market.