Bitwise Files for Spot Solana ETF Amid Growing Crypto Momentum

• Bitwise, a  San Francisco-based financial services firm, is preparing for a Solana ETF after filing an XRP ETF with the SEC.
• The Bitwise Solana ETF is designed to mirror Solana’s performance and is currently the fourth-largest cryptocurrency in market capitalization.

The approval of a Bitcoin Exchange Trust Fund (ETF) and Ethereum ETFs by the Securities and Exchange Commission (SEC) marked the genesis of a new era in the cryptocurrency market. In light of this, Bitwise has leaped expanding its crypto offerings, and is now focusing on launching a Solana ETF. 

The asset management company has established a statutory trust in Delaware for this initiative. Nonetheless, the firm has yet to submit an S-1 registration statement to the SEC. Registration of the statutory trust is essential for Bitwise to establish a credible framework for its planned ETF.

Bitwise’s filing for a Solana ETF positions it alongside 21Shares, Nashville-based Asset manager Canary Capital, and VanEck, who are also looking to capitalize on Solana’s increasing importance. VanEck has highlighted this potential by comparing Solana to well-known commodities like Bitcoin and Ethereum in its submission.

The proposed Bitwise Solana ETF aims to track the price of SOL, as revealed in state department filings. This initiative is part of Bitwise’s broader expansion strategy and follows a notable 400% increase in its assets under management (AUM) this year, now totaling at least $5 billion.

The company’s aggressive growth is reflected in recent acquisitions, such as the Attestant, an Ethereum staking company that manages $3.7 billion in staked ETH, and the success of its BITB spot Bitcoin ETF, which has attracted $2.3 billion in inflows. Additionally, its Ethereum ETF (ETHW) has recorded $373 million in positive flows.

Solana’s Rapid Market Expansion

Solana continues to expand with the recent launch of the USDS stablecoin by Sky, formerly known as Maker, as per CNF report. This innovative stablecoin is being touted as the “first major DeFi-native stablecoin” on the Solana blockchain, marking a significant milestone for the platform. The integration leverages Wormhole’s Native Token Transfer technology, which bolsters Solana’s cross-chain functionality and liquidity.

As a result, this development enhances the user experience within the Solana ecosystem and also attracts more DeFi projects.

Solana has showcased remarkable technical performance, particularly in terms of daily revenue generation, recently achieving record-high daily revenues fueled by increased demand for meme coins. The blockchain recorded impressive figures, generating $11.8 million in fees, significantly surpassing Ethereum’s $6.32 million. Additionally, its daily revenue reached $5.9 million, ranking just behind Tether’s $13.3 million. 

Moreover, the Total Value Locked (TVL) in Decentralized Finance (DeFi) on the platform has soared to $8.35 billion, further solidifying Solana’s position in the blockchain space. At the time of writing, SOL is priced at $246, reflecting a 1.49% increase for the day. With a market capitalization of $116 billion, Solana has surpassed Binance’s BNB to become the fourth-largest cryptocurrency and is now targeting Ethereum.