Bitwise Registers Trust for Potential Solana ETF Amid Regulatory Changes
Bitwise has registered a statutory trust in Delaware, marking its initial step toward launching a SOL ETF. This makes Bitwise the fourth firm pursuing a spot SOL ETF, joining VanEck, 21Shares, and Canary Capital.
CEO Hunter Horsley described Solana as a standout success in the current crypto cycle, indicating strong client interest. The firm has also filed for an XRP ETF.
Despite the absence of a regulated futures market for Solana in the US—previously viewed as essential for spot crypto ETFs—a potentially more crypto-friendly Trump administration could facilitate the approval of SOL ETFs. Recent reports suggest the SEC is engaging more actively with SOL ETF applicants, contrasting with earlier rejections of filings from Cboe exchange.
The change in regulatory outlook follows SEC chair Gary Gensler's resignation. Horsley noted that the upcoming US presidential election influenced Bitwise's decision to pursue a SOL ETF, considering it a constructive time to engage with regulators after a year of deliberation.
Alongside competitors like VanEck and 21Shares, Bitwise offers a Solana exchange-traded product (ETP) in Europe, acquired through the purchase of London-based ETC Group. The Solana ETP has $27 million in assets under management, significantly smaller than 21Shares' nearly $1.4 billion ETP.
A potential spot ETF would allow US investors to gain exposure to SOL in a regulated environment. SOL could become the third cryptocurrency to have a US-traded ETF, following Bitcoin and Ether. While Bitcoin saw significant inflows post-launch, Ether's demand was lower. Horsley attributed Ether's challenges to seasonal market dynamics and two simultaneous crypto ETF launches.
Horsley emphasized Solana's potential, suggesting it may attract investors seeking the "next big thing" in crypto, with many viewing SOL as that opportunity.