• Bitwise information for a Solana ETF as SOL nears its all-time excessive of $259.
• Optimism grows with Trump’s election and SEC Chair Gary Gensler’s resignation.
• Competing companies like VanEck and 21Shares additionally search Solana ETF approvals.

Crypto asset supervisor Bitwise has taken a big step in increasing its exchange-traded fund (ETF) choices by submitting for a Solana (SOL) ETF in Delaware.

The submitting, confirmed by Bitwise CEO Hunter Horsley, comes at a time of rising optimism within the crypto market, fueled by latest political developments and a resurgence in Solana’s price.

If accredited, the ETF will present institutional and retail buyers with 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 has seen its price surge to over $255, approaching its all-time excessive of $259 recorded in 2021.

The rising pattern in crypto ETFs

ETFs have change into a well-liked funding automobile for offering oblique publicity to cryptocurrencies, and Bitwise has already made its mark with Bitcoin and Ethereum ETFs buying and selling on US inventory exchanges.

Solana’s inclusion would broaden Bitwise’s product portfolio, capitalizing on the growing 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, usually in comparison with Ethereum as a result of its cheaper and sooner transactions. This utility has attracted builders and buyers alike, additional driving the 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 heightened market optimism linked to political shifts in the USA. Former President Donald Trump’s election has sparked hope for a extra crypto-friendly regulatory surroundings, given his marketing campaign’s pro-crypto stance.

This optimism has been additional bolstered by the announcement of SEC Chair Gary Gensler’s deliberate resignation on January 20, 2025, coinciding with the beginning of Trump’s second time period.

Market individuals anticipate {that a} Trump-appointed SEC chair will undertake a extra favorable method towards crypto belongings, doubtlessly paving the way in which for the approval of spot ETFs tied to digital currencies like Solana.

Ripple’s Chief Authorized Officer has made a put up on X saying the following SEC chair ought to “End all non-fraud crypto litigation on Day 1,” amongst different factor.

Plenty of unsolicited recommendation on right here about who ought to (or shouldn’t) be the following SEC Chair. I belief the transition staff to make the best name with these desk stakes for crypto in thoughts:
1.Finish all non-fraud crypto litigation on Day 1.
2.Get commitments from Commissioners Uyeda and…

— Stuart Alderoty (@s_alderoty) November 21, 2024

A number of different firms have filed for Solana ETFs

Bitwise isn’t the one participant eyeing a Solana ETF. Different main asset managers, together with Canary Capital, VanEck, and 21Shares, have additionally filed for related merchandise.

Whereas Solana ETFs have been beforehand considered as a difficult proposition because of the SEC’s classification of Solana as an unregistered safety, the altering regulatory panorama seems to have altered these expectations.

Though the submitting in Delaware represents an early stage within the approval course of, Bitwise might want to submit extra documentation to the SEC earlier than the fund can change into a actuality.

The approval of Bitcoin spot ETFs earlier this yr 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 swimsuit.

With political winds shifting and Solana surging, the approaching months might mark a pivotal second for each the asset and the broader market.