Bitwise Asset Management has made a substantial stride toward the establishment of a spot Solana exchange-traded fund (ETF).
The company registered a statutory trust in Delaware through CSC Delaware Trust on Nov. 20, indicating that it intends to submit a filing to the Securities and Exchange Commission (SEC) for approval.
In a post on X on November 20, Bitwise CEO Hunter Horsley verified the registration, but he declined to provide additional information.
What is the next step?
Bitwise must submit 19b-4 and S-1 forms to the SEC in order to launch the ETF. Investors would have access to the fourth-largest cryptocurrency by market capitalization if the ETF were authorized, as it would correspond to Solana’s market price.
The ETF would be in competition with other firms, such as VanEck and Canary Capital, which are also engaged in the pursuit of spot Solana ETFs. The ETF’s ticker and intended exchange have not been disclosed by Bitwise; however, it may be included in the NYSE Arca listing of its other funds.
Solana’s increasing market allure is evidenced by its ascent in the ETF landscape. The past year has seen a 354% increase in the value of the digital asset, which has been supported by a surge in institutional interest.
According to industry analysts, the initial Solana ETFs could be introduced by 2025, following the success of spot Bitcoin and Ethereum ETFs.
Increasing Cryptocurrency Portfolio
Bitwise’s strategy to expand its cryptocurrency offerings is consistent with the proposed Solana ETF.
The company has experienced substantial growth in 2024, with its assets under management (AUM) surpassing $5 billion by mid-October, representing a 400% increase from the year’s inception.
Bitwise’s Bitcoin ETF, BITB, has been a significant factor in this expansion, attracting over $2 billion in net inflows since its inception. The product’s allure was further enhanced by the initiation of options trading on Nov. 20.
The company has expanded its portfolio by acquiring Attestant, a London-based provider of non-custodial Ethereum staking services. This acquisition brings Bitwise’s total managed assets to over $10 billion, which includes Attestant’s $3.7 billion AUM.
