On Wednesday afternoon, Bitwise Investment, a prominent asset manager and exchange-traded fund (ETF) issuer, said submitted an S-1 form filing for a spot Solana ETF with the U.S. Securities and Exchange Commission (SEC) in the State of Delaware.
This move positions Bitwise in the race for regulatory approval to launch an index fund investing in Solana, currently the fourth largest cryptocurrency by market cap.
Bitwise Joins Race For Solana ETF
This filing follows similar efforts by other asset managers, including VanEck and Canary Capital, who have also sought approval for their own Solana ETF proposals in recent months.
However, the path to approval for these new ETFs remains uncertain under the SEC’s current leadership. To date, Bitcoin is the only cryptocurrency to be recognized as a commodity, a move that has led to frustration among investors due to the uncertainty surrounding the legal status of other tokens.
Still, the landscape could change dramatically starting January 20, 2025, when President-elect Donald Trump takes office. Trump has publicly pledged to impeach the SEC chairman Gary Gensler on day one, whose leadership has been marked by tough regulatory measures that many in the crypto industry see as obstacles.
Speculation grows about new SEC chairman
Currently, there is a lot of speculation about the possible appointment of a new SEC chairman who could take a more pro-crypto stance. names on the table.
If this happens, the chances of these Solana ETF funds being approved in 2025 could significantly increase, potentially encouraging other asset managers to submit additional applications, perhaps for other digital assets on the market.
Furthermore, the expected regulatory clarity brought by the Trump administration could act as a catalyst for growth in the crypto landscape, boosting investor confidence and paving the way for broader adoption of digital assets on traditional financial markets.
At the time of writing, SOL is trading at $236, up 13% on a weekly basis and approaching the all-time high of $259 reached during the 2021 bull run.
Featured image of DALL-E, chart from TradingView.com