Emily Walker
On Wednesday afternoon, Bitwise Investment, a leading asset manager and ETF issuer, filed an S-1 application for a spot Solana ETF with the US Securities and Exchange Commission (SEC) in Delaware.
This initiative places Bitwise in competition for approval to launch a fund that would invest in Solana, which ranks as the fourth-largest cryptocurrency by market value.
Bitwise Enters the Solana ETF Competition
This latest application follows similar moves by other firms, such as VanEck and Canary Capital, who have also put forth proposals for Solana ETFs in recent months.
However, gaining approval for these new ETFs may prove challenging due to the current stance of the SEC. As of now, Bitcoin remains the only cryptocurrency deemed a commodity, leading to frustration among investors concerning the unclear regulatory status of other digital tokens.
The situation may shift substantially starting January 20, 2025, when President-elect Donald Trump is set to take office. Trump has vowed to dismiss SEC Chairman Gary Gensler immediately, whose stringent regulatory approach has been viewed as a barrier by many in the cryptocurrency sector.
Speculation About a New SEC Leadership
There is considerable speculation regarding who might succeed Gensler as SEC chairman, with many potential candidates who could adopt a more crypto-friendly approach.
If a pro-crypto chair is appointed, the chances for approving these Solana ETF applications in 2025 could improve, possibly leading other asset managers to pursue applications for various digital assets in the market.
Moreover, the promised regulatory clarity under the upcoming Trump administration could potentially drive growth within the crypto sector, enhancing investor trust and facilitating wider acceptance of digital assets in traditional financial markets.
As of this writing, SOL is priced at $236, marking a 13% weekly increase and nearing its all-time high of $259 from the 2021 bull market.
Image sourced from DALL-E; chart data from TradingView.com.