Bitwise Asset Management, a prominent crypto investment firm, has taken a significant step towards launching a spot Solana exchange-traded fund (ETF). The company recently registered a statutory trust in Delaware through CSC Delaware Trust, indicating its intention to file with the Securities and Exchange Commission (SEC) for approval. Bitwise CEO Hunter Horsley confirmed the registration in a post on X, but did not provide further details regarding the ETF.
In order to launch the Solana ETF, Bitwise will need to submit 19b-4 and S-1 forms to the SEC for approval. If approved, the ETF would track Solana’s market price, offering investors exposure to the fourth-largest cryptocurrency by market capitalization. Bitwise will face competition from other firms such as VanEck and Canary Capital, who are also pursuing spot Solana ETFs. While Bitwise has not disclosed the ETF’s ticker or intended exchange, it is likely to join the company’s other funds listed on NYSE Arca.
Solana’s rise in the ETF landscape reflects its growing market appeal, with the digital asset experiencing a 354% surge over the past year, fueled by increasing institutional interest. Industry analysts predict that the first Solana ETFs could debut by 2025, following the success of spot Bitcoin and Ethereum ETFs.
The planned Solana ETF aligns with Bitwise’s strategy to expand its crypto offerings. The firm has seen significant growth in 2024, with its assets under management (AUM) reaching $5 billion by mid-October, a 400% increase from the beginning of the year. Bitwise’s spot Bitcoin ETF, BITB, has been a key driver of this growth, attracting over $2 billion in net inflows since its launch. Options trading on the product also began on Nov. 20, adding to its appeal.
In addition to expanding its crypto offerings, Bitwise has diversified its services by acquiring Attestant, a London-based provider of non-custodial Ethereum staking services. This acquisition has increased Bitwise’s total managed assets to over $10 billion, including Attestant’s $3.7 billion AUM. The company’s continued growth and strategic moves in the crypto space position it as a key player in the evolving digital asset landscape.
In conclusion, Bitwise Asset Management’s registration of a statutory trust in Delaware for a spot Solana ETF signals the company’s commitment to expanding its crypto offerings and catering to investor demand for exposure to emerging digital assets. The planned Solana ETF reflects the growing market appeal of the cryptocurrency, driven by institutional interest and a surge in its market value. With competition from other firms also pursuing Solana ETFs, Bitwise’s strategic moves and strong performance in the crypto space position it as a leader in the industry, poised for continued growth and success.
