- Bitwise recordsdata for Solana ETF as SOL nears its all-time excessive of $259.
- Optimism will increase with Trump’s election and the resignation of SEC Chairman Gary Gensler.
- Competing firms like VanEck and 21Shares are additionally searching for Solana ETF approval.
Crypto asset supervisor Bitwise has taken a major step in increasing its exchange-traded fund (ETF) providing by submitting for the Solana (SOL) ETF in Delaware.
filed, Bitwise CEO Hunter Horsley confirmed thisThe coin comes at a time of rising optimism within the crypto market, pushed by current political developments and a resurgence within the value of Solana.
If authorized, the ETF will present institutional and retail traders publicity to Solana, a blockchain platform famend for its velocity, scalability, and developer-friendly ecosystem.
As of now, Solana (SOL) is the fourth largest cryptocurrency by market capitalization and its value has risen above $255, reaching its all-time excessive of $259 recorded in 2021.
Rising pattern in crypto ETF
ETFs have develop into a well-liked funding automobile to offer oblique publicity to cryptocurrencies, and Bitwise has already made its mark with Bitcoin and Ethereum ETFs buying and selling on US inventory exchanges.
The addition of Solana expands Bitwise’s product portfolio, benefiting from the rising curiosity in blockchain applied sciences past Bitcoin and Ethereum.
The Solana blockchain has gained prominence for supporting decentralized functions (dApps), video games, and meme cash attributable to its cheaper and sooner transactions, typically in comparison with Ethereum. This utility has attracted builders and traders alike, resulting in elevated demand for monetary merchandise tied to Solana’s efficiency.
Solana ETF Approval Optimism Pushed by Political Developments
The timing of the submitting is noteworthy, because it coincides with elevated market optimism related to political modifications in america. The election of former President Donald Trump has raised hopes for a extra crypto-friendly regulatory atmosphere, given the pro-crypto stance of his marketing campaign.
This optimism has been additional strengthened Announcement SEC Chairman Gary Gensler had deliberate to resign on January 20, 2025, coinciding with the beginning of Trump’s second time period.
Market members anticipate that the Trump-appointed SEC chair will take a extra favorable method towards crypto belongings, probably paving the way in which for the approval of spot ETFs tied to digital currencies like Solana.
Ripple’s chief authorized officer posted on X that the following SEC chair ought to “finish all non-fraudulent crypto litigation on day one,” amongst different issues.
Here is a whole lot of unsolicited recommendation about who ought to (or should not) be the following SEC Chairman. I belief the transition staff to make the precise choices with these desk stakes in thoughts for crypto:
1. Finish all non-fraudulent crypto litigation on day one.
2. Obtain commitments from Commissioner Uyeda and…– Stuart Alderoty (@s_alderoty) 21 November 2024
A number of different firms have utilized for Solana ETF
Bitwise is not the one participant eyeing a Solana ETF. Different main asset managers, together with Canary Capital, VanEck and 21Shares, have additionally filed for comparable merchandise.
Whereas Solana ETFs have been beforehand considered as a difficult proposition as a result of SEC classifying Solana as an unregistered safety, the altering regulatory panorama has modified these expectations.
Though the submitting in Delaware represents the preliminary step within the approval course of, Bitwise might want to submit further documentation to the SEC earlier than the fund turns into a actuality.
The approval of a Bitcoin spot ETF earlier this 12 months demonstrated the SEC’s willingness to interact with crypto-based funding merchandise, and the market is now watching carefully to see if Solana will comply with go well with.
With the political winds altering and Solana surging, the approaching months could possibly be a pivotal second for each the asset and the broader market.
