• Bitwise filed for the Solana ETF as SOL approaches its all-time excessive of $259.
• Optimism elevated after Trump's election and SEC Chairman Gary Gensler's resignation.
• Opponents comparable to VanEck and 21Shares are additionally in search of approval for the Solana ETF.

Crypto asset administration firm Bitwise has taken an essential step towards increasing its exchange-traded fund (ETF) providing with the submitting of the Solana (SOL) ETF in Delaware.

The submitting, confirmed by Bitwise CEO Hunter Horsley, comes amid elevated optimism within the crypto market resulting from latest political developments and a restoration in Solana costs.

If authorized, the ETF will present institutional and particular person buyers with publicity to Solana, a blockchain platform recognized for its pace, scalability, and developer-friendly ecosystem.

In the mean time, Solana (SOL) is the fourth largest cryptocurrency by market capitalization, and its worth has soared above $255, approaching the all-time excessive of $259 set in 2021.

Progress traits of digital foreign money ETFs

ETFs have turn out to be a well-liked funding car that gives oblique publicity to cryptocurrencies, and Bitwise has already made a reputation for itself by buying and selling Bitcoin and Ethereum ETFs on US inventory exchanges.

Solana's addition will increase Bitwise's product portfolio to capitalize on the rising curiosity in blockchain expertise past Bitcoin and Ethereum.

The Solana blockchain has turn out to be well-known for supporting decentralized purposes (dApps), video games, and meme cash, and is commonly in comparison with Ethereum for its low-cost and quick transactions. This utility has attracted builders and buyers alike, additional driving demand for monetary merchandise associated to Solana's efficiency.

Optimism for approval of Solana ETF is pushed by political scenario

The timing of this submitting is notable because it coincides with elevated market optimism associated to political adjustments in the US. The election of former President Donald Trump raised expectations for a extra crypto-friendly regulatory atmosphere given his marketing campaign's pro-crypto stance.

This optimism was additional strengthened by SEC Chairman Gary Gensler's announcement that he plans to resign on January 20, 2025, coinciding with the beginning of President Trump's second time period.

Market individuals anticipate President Trump-appointed SEC chair to take a extra favorable strategy to crypto property, doubtlessly paving the way in which for approval of spot ETFs associated to digital currencies like Solana I’m doing it.

Ripple's chief authorized officer posted on X that the following SEC chairman will “finish all non-fraud crypto lawsuits on day one.”

There's a variety of unsolicited recommendation right here about who ought to (or shouldn't) turn out to be the following SEC chairman. I belief the migration crew to make the best selections maintaining in thoughts the dangers within the desk beneath relating to cryptocurrencies.
1. Finish all non-fraud crypto lawsuits on day 1.
2. Obtained assurance from Commissioner Ueda…

— Stuart Alderoty (@s_alderoty) November 21, 2024

A number of different corporations have utilized for the Solana ETF.

Bitwise will not be the one firm taking note of the Solana ETF. Different giant asset managers, together with Canary Capital, VanEck and 21Shares, have utilized for comparable merchandise.

Solana ETFs had been beforehand seen as a troublesome proposition as a result of the SEC labeled Solana as an unregistered safety, however the altering regulatory panorama seems to have modified these expectations.

Whereas the Delaware submitting represents an early stage within the approval course of, Bitwise might want to file further documentation with the SEC earlier than the fund turns into a actuality.

The approval of the Bitcoin Spot ETF earlier this 12 months demonstrated the SEC’s urge for food for engaged on crypto-based funding merchandise, and the market is now watching to see if Solana will comply with swimsuit.

The following few months could possibly be pivotal for each the asset and the broader market, as political winds shift and Solana inventory soars.