- Bitwise requires Solana ETF as SOL approaches its all-time excessive of $259.
- Optimism is rising with Trump's election and the resignation of SEC Chairman Gary Gensler.
- Competing companies corresponding to VanEck and 21Shares are additionally looking for approval of the Solana ETF.
Crypto asset supervisor Bitwise has taken a significant step in increasing its exchange-traded fund (ETF) choices by submitting for the Solana (SOL) ETF in Delaware.
The submitting, confirmed by Bitwise CEO Hunter Horsley, comes at a time of rising optimism within the crypto market, boosted by current political developments and a restoration within the value of Solana.
If authorised, the ETF will give institutional and retail buyers publicity to Solana, a blockchain platform identified for its velocity, scalability and developer ecosystem.
At present, Solana (SOL) is the fourth largest cryptocurrency by market capitalization and has seen its value improve above $255, bringing it nearer to its all-time excessive of $259 recorded in 2021.
Rising development in crypto ETFs
ETFs have turn into a well-liked funding car for offering oblique publicity to cryptocurrencies, and Bitwise has already made a reputation for itself by buying and selling Bitcoin and Ethereum ETFs on US exchanges.
The inclusion of Solana would develop Bitwise's product portfolio and make the most of the rising curiosity in blockchain applied sciences outdoors of Bitcoin and Ethereum.
The Solana blockchain has come to the fore by supporting decentralized purposes (dApps), video games and meme cash, which are sometimes in comparison with Ethereum for cheaper and quicker transactions. This utility attracted each builders and buyers and additional elevated demand for monetary merchandise linked to Solana's efficiency.
Solana ETF endorses optimism pushed by political developments
The timing of the submitting is notable because it coincides with elevated market optimism related to political shifts in the USA. The election of former President Donald Trump raised hopes for a extra cryptocurrency-friendly regulatory surroundings, given his marketing campaign's pro-crypto stance.
This optimism was additional bolstered by the announcement of SEC Chairman Gary Gensler's deliberate resignation on January 20, 2025, coinciding with the beginning of Trump's second time period.
Market members anticipate the Trump-appointed SEC chairman to take a extra favorable method to crypto belongings, doubtlessly paving the way in which for the approval of spot ETFs tied to digital currencies like Solana.
Ripple's head of authorized affairs posted on X saying that the following SEC chairman ought to, amongst different issues, “finish all cryptocurrency litigation with out fraud on day 1.”
There's quite a lot of unsolicited recommendation on the market about who ought to (or shouldn't) be the following SEC chairman. I imagine the transition crew will make the suitable name with these stakes on the crypto desk:
1. On Day 1, finish all non-fraudulent cryptocurrency disputes.
2. Get pledges from Uyeda commissioners and…— Stuart Alderoty (@s_alderoty) November 21, 2024
A number of different firms have utilized for the Solana ETF
Bitwise isn't the one participant eyeing the Solana ETF. Different main asset managers, together with Canary Capital, VanEck and 21Shares, have additionally utilized for comparable merchandise.
Whereas Solana ETFs have been beforehand thought-about a difficult proposition because of Solana's SEC classification as an unregistered safety, the altering regulatory surroundings seems to have modified these expectations.
Though the Delaware submitting represents an early stage 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 bitcoin spot ETFs earlier this yr demonstrated the SEC's willingness to interact in cryptocurrency-based funding merchandise, and the market is now watching carefully to see if Solana will observe swimsuit.
With the political winds shifting and Solano surging, the approaching months might mark a pivotal second for each the asset and the broader market.
