Bitwise Joins the Solana ETF Competition Amid Rising Optimism

A formal move to introduce a Solana ETF in the US crypto Investment Company Bitwise has joined the competition.

After 21Shares VanEck and Canary Capital Bitwise is now the fourth competitor trying to take advantage of Solana’s rising popularity. The action was validated on November 20- 2024 when the “Bitwise Solana ETF” was registered in Delaware and filed with the U.S. SEC.

Such filings have been boosted by President-elect Donald Trump’s increased desire for policies that are favorable to crypto. It is expected that a new SEC chair would be appointed by Trump’s upcoming government which is scheduled to start office in January 2025 enhancing expectations for a more accommodative regulatory climate.

These adjustments have increased the plausibility of ideas like Solana ETFs which could hasten their approval.

Solana is a blockchain that has performed exceptionally well during this year’s crypto boom and also known for its quick and inexpensive transactions. Increased trading activity especially in memecoins is pushing its native token SOL closer to all-time highs last observed in 2021.

The traditional investors might avoid the hassles of direct crypto purchases by using an ETF linked to SOL to obtain exposure to its price swings through brokerage accounts.

🚨 NEW: Bitwise files for a Spot Solana ETF, joining VanEck and Canary Capital in the race for SEC approval. pic.twitter.com/HhJuvP8XyD

— Cointelegraph (@Cointelegraph) November 21, 2024

The Strategy of Bitwise

Bitwise’s foray into the Solana ETF competition follows its track record of introducing ETFs for significant assets such as Ethereum and Bitcoin. The company is renowned for taking measured chances in the past and it has applied for ETFs for contentious commodities like XRP.

Additionally it serves a large number of registered investment advisers with $5 billion in assets managed last month.

Bitwise’s exchange partner Cboe has already filed the necessary 19b-4 documents for the Solana ETF. The S-1 form required for its launch however has not yet been released. The Bitwise Solana ETF will be able to trade on NYSE Arca alongside its Bitcoin and Ethereum ETFs once authorized.

The crypto sector is hopeful about the acceptance since Solana ETFs are seen as a step toward wider adoption. As Solana solidifies its position as a center for trade and decentralized finance the race underscores the increasing interest in blockchain-based financial products.

Trump’s expected policies and Solana’s growing popularity could open up new avenues for investment and further validate crypto assets in conventional markets for Bitwise and its rivals.