On Wednesday afternoon, Bitwise Investment, a prominent asset manager and exchange-traded fund (ETF) issuer, submitted an S-1 form application for a spot Solana ETF to the US 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 that invests in Solana, currently the fourth-largest cryptocurrency by market capitalization.
Bitwise Joins Race For Solana ETF
This application follows similar efforts by other asset managers, including VanEck and Canary Capital, which 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 current SEC leadership. To date, Bitcoin is the only crypto recognized as a commodity, a move that has sparked frustration among investors due to the ambiguity surrounding the regulatory status of other tokens.
Yet the landscape could change dramatically starting on January 20, 2025, when President-elect Donald Trump takes office. Trump has publicly pledged to remove SEC Chairman Gary Gensler on day one, whose leadership has been characterized by harsh regulatory measures that many in the crypto industry see as obstacles.
Speculation Grows Over New SEC Chair
Currently, there is a lot of speculation about the possible appointment of a new SEC chair who might take a more pro-crypto stance, with many names on the table.
If this happens, the likelihood of these Solana ETF funds being approved in 2025 could increase significantly, potentially encouraging other asset managers to submit additional applications, perhaps for other digital assets in the market.
In addition, the anticipated regulatory clarity that may come with the Trump administration could act as a catalyst for growth in the crypto landscape, fostering greater investor confidence and paving the way for broader acceptance of digital assets in traditional financial markets.
At the time of writing, SOL is trading at $236, up 13% on a weekly basis and approaching its all-time high of $259 reached during the 2021 bull run.
Featured image from DALL-E, chart from TradingView.com