Bitwise, a leading digital asset management firm, has taken a significant step toward launching a spot Solana exchange-traded fund (ETF) by registering a statutory trust in Delaware. This move positions Bitwise to compete with other major asset managers like VanEck and Canary Capital for SEC approval.
Details of the Registration
According to Delaware’s Division of Corporations, Bitwise incorporated its Solana ETF trust on November 20. The registration lists CSC Delaware Trust Company, based in Wilmington, as the trust’s registered agent.
To proceed, Bitwise must submit both a 19b-4 filing and an S-1 registration statement to the U.S. Securities and Exchange Commission (SEC). Once filed, the proposed Solana ETF would aim to track the price of Solana (SOL), the fourth-largest cryptocurrency by market cap.
- Stock Exchange Listing: While the filing didn’t specify a stock exchange, Bitwise’s Bitcoin and Ethereum ETFs trade on the New York Stock Exchange Arca, suggesting a likely platform.
- Ticker Symbol: The Solana ETF’s ticker symbol has not yet been disclosed.
Bitwise’s Competitive Strategy
This isn’t Bitwise’s first foray into spot ETFs. On October 1, the firm registered a spot XRP ETF in Delaware, submitting its S-1 registration to the SEC the following day. By targeting Solana, Bitwise is banking on the cryptocurrency’s impressive performance during recent market upswings.
Solana’s Market Performance
Solana has been a standout in the current bull cycle, surging 2,360% to reach $236.91, according to CoinGecko data. However, it struggled during the bear market, underperforming other large-cap cryptocurrencies and failing to set a new all-time high this cycle.
The Broader ETF Landscape
The SEC has delayed decisions on other crypto ETFs, such as the Franklin Templeton Crypto Index ETF, which now faces a review in early 2025. While spot Bitcoin ETFs have seen significant inflows, analysts predict smaller interest in a spot Solana ETF due to its niche appeal.
VanEck’s Head of Digital Asset Research, Matthew Sigel, is optimistic about the regulatory landscape improving under the incoming administration, increasing the chances of a spot Solana ETF being approved by the end of 2025.
Bitwise isn’t alone in targeting alternative cryptocurrencies for ETFs. Asset managers are exploring filings for spot Litecoin ETFs, diversifying their offerings beyond Bitcoin and Ethereum.
