Bitwise Files for Solana ETF, Hoping for Trump-era Innovation

Bitwise Asset Management has filed an application to establish a trust fund in Delaware for the Solana ETF. This move indicates a new effort to expand cryptocurrency products amid growing interest in blockchain-based assets.

The filing represents the preliminary steps necessary to launch this financial instrument. The general sentiment is that this could lead to a filing with the U.S. Securities and Exchange Commission (SEC) for approval.

Bitwise Expands Strategy with Solana ETF

According to state records, Bitwise's proposed Solana ETF aims to track the price of Solana (SOL). This move is part of Bitwise's broader expansion strategy and follows the company's 400% growth in assets under management (AUM) this year. Currently, Bitwise has at least $5 billion in AUM.

Recent acquisitions, such as the Ethereum staking service Attestant, and the success of the company's BITB immediate Bitcoin ETF, highlight their strong growth trajectory. Notably, Bitwise's BITB has attracted $2.3 billion in inflows. Meanwhile, their Ethereum ETF (ETHW) currently records $373 million in positive net flows.

While the trading ticker or exchange listing have not been disclosed, Bitwise's filing for a Solana ETF positions the company to compete with rivals like VanEck, 21Shares, and Canary Capital. These competitors have also sought to capitalize on Solana's growing prominence, with VanEck comparing Solana to commodities like BTC and ETH in its filings.

"The language in the Ethereum 19b4s ETFs, describing ETH as a commodity, would also fit Solana,"

Mathew Siegel, head of research at VanEck said.

While the filing represents progress, the path to approval for a Solana ETF remains challenging. The SEC has been known for its close scrutiny of crypto ETFs, citing concerns about market manipulation, custody risks, and the classification of assets like Solana. Industry experts have expressed doubts about whether the SEC will approve a Solana ETF in the near term, as seen in previous filings where Solana's status as a commodity has been questioned.

Furthermore, previous filings for Solana ETFs have been withdrawn from CBOE (Chicago Board Options Exchange) due to unresolved legal concerns. This volatility has nearly eliminated the chances of approval earlier this year, causing skepticism among market participants.

New Hope Under the Trump Administration

However, the situation appears to be changing after Donald Trump's re-election, which many in the industry see as a potential catalyst for the crypto sector. The Trump administration has signaled support for cryptocurrencies, with experts suggesting that his policies could create a more favorable legal environment for ETFs like the one Bitwise has proposed.

According to analysts, Trump's commitment to promoting innovation and reducing bureaucratic barriers could allow the SEC to approve more crypto ETFs, including products focused on Solana.

"Solana's biggest win from Trump's new term will be the ETF we've been waiting for since 2025 or 2026. Unsurprisingly, VanEck's stellar team will lead the way here with support from 21Shares and Canary Capital,"

Dan Jablonski, head of development at news and research firm Syndica said.

If the Solana ETF is approved, it could mark a significant shift in the U.S. legal landscape. More immediately, it would allow the country to catch up with nations like Brazil, where a Solana ETF was launched earlier this year. Such developments could help the U.S. solidify its position as a leader in the global crypto market.

The potential approval of a Solana ETF under the Trump administration would have far-reaching implications for the U.S. crypto market. It could drive institutional adoption, spur innovation, and position the country as a leader in blockchain technology. Furthermore, this would send a strong signal that the legal environment is becoming more crypto-friendly, potentially attracting more investment, talent, and the possibility of an XRP ETF, which Bitwise and Canary Capital have already pursued.

"In addition to the index crypto funds from Grayscale & Bitwise, there are now filings for immediate ETFs for SOL, XRP, and HBAR. Guessing at least one issuer will take a shot at an ADA or AVAX ETF,"

Nate Geraci said on X (Twitter).

According to data from BeInCrypto, the Solana token price has risen slightly by 1.48% on the news. At the time of writing, SOL is trading at $238.91.

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