Nikolas Sargeant
Bitwise Asset Management has filed to establish a trust entity for its proposed Bitwise Solana ETF in Delaware, signaling a strategic approach to entering the cryptocurrency investment market. This filing indicates the company's intention to pursue regulatory approval from the U.S. Securities and Exchange Commission (SEC), positioning itself alongside other asset managers exploring Solana-focused investment opportunities.
The move aligns with emerging trends of institutional cryptocurrency investment, with VanEck and 21Shares similarly pursuing Solana-focused ETF products.
VanEck Positions Solana Alongside Crypto Giants
VanEck launched its Solana initiative in June, positioning the cryptocurrency as a commodity comparable to Bitcoin and Ethereum. The strategic filing emphasizes the growing institutional recognition of Solana's market potential.
The proposed Bitwise Solana ETF aims to track the performance of Solana, currently ranking as the fourth-largest cryptocurrency by market capitalization. This filing follows Bitwise's recent S-1 registration for an XRP ETF, demonstrating the company's aggressive expansion in cryptocurrency investment products.
Bitwise has experienced remarkable growth in 2024, with assets under management (AUM) reaching $5 billion by October 15—a 400% year-to-date surge. The firm's spot Bitcoin ETF, BITB, has attracted $2.3 billion in net inflows, ranking second among provider offerings.
The company recently acquired Attestant, a London-based non-custodial Ether staking service provider, expanding its crypto service portfolio. This acquisition will enable Bitwise to manage over $10 billion in assets, including Attestant's $3.7 billion AUM.
A potential Trump presidential victory could potentially accelerate the approval of new crypto ETFs, with several waiting for regulatory green light. These proposed ETFs could include funds tracking altcoins like Solana, Ripple, and Litecoin.
Solana DApps Demonstrate Market Resilience
Solana-based decentralized applications (DApps) have recorded unprecedented fees and revenue, driven by a resurgent meme coin market. Decentralized exchanges on the Solana network have simultaneously experienced record trading activity.
Institutional investment in Solana blockchain applications rebounded in Q3 2024, with DApps attracting $173 million across 29 funding rounds—representing a 54% quarterly increase despite a 37% reduction in funding rounds, according to Messari.
The investment marks Solana's highest project funding since Q2 2022. The quarter witnessed significant fee-related metrics: daily fee payers increased 109% to 1.9 million, new fee payers surged 430% to 1.3 million, while daily transaction volume excluding voting activities dropped 12% to 62 million transactions.
