Bitwise, one of the leading digital asset investment firms, has made a strategic move to expand its product portfolio, focusing on Solana ($SOL ). On November 20, the company announced that it has registered the Solana Trust in the state of Delaware, a move that is seen as a step towards filing for approval of a Solana ETF from the US Securities and Exchange Commission (SEC).

Solana ETF Preparation Move

#Bitwise CEO Hunter Horsley confirmed the filing in a post on Nov. 20 but did not provide further details. Bitwise will file Forms 19b-4 and S-1 with the SEC to launch a Solana spot ETF. If approved, the fund would track the market price of Solana, giving institutional and retail investors access to the fourth-largest cryptocurrency by market capitalization.

Compete With Rivals

Bitwise isn’t the only firm pursuing a Solana spot ETF. Big names like VanEck and Canary Capital have also jumped in to capitalize on Solana’s growing appeal. While Bitwise hasn’t announced a ticker or proposed exchange for the ETF, it’s likely to be listed on major platforms like NYSE Arca.

Solana's Growing Appeal

Solana had a stellar 2024, growing 354%, largely due to institutional interest. This is a clear sign of its appeal in the digital finance landscape. Analysts expect the first Solana spot ETF to be approved and launched in 2025, following the success of Bitcoin and Ethereum spot ETFs.

Bitwise's Expansion Strategy

Preparing for the Solana ETF is part of Bitwise's broader strategy to diversify its digital asset portfolio:

  • In 2024, Bitwise recorded impressive growth with total assets under management (AUM) reaching $5 billion in mid-October, up 400% from the beginning of the year.

  • Bitwise’s Bitcoin Spot ETF (BITB) has been a major driver of growth, attracting more than $2 billion in net inflows since its launch. Options trading on the ETF also began on November 20, further bolstering its appeal.

  • The company also expanded its services by acquiring Attestant, a London-based non-custodial Ethereum staking provider, bringing Bitwise's total AUM to over $10 billion, of which $3.7 billion belongs to Attestant.

Expectations on Solana ETF

Bitwise’s application for Solana Trust not only demonstrates the company’s confidence in Solana’s potential, but is also a strategic move to capture market trends. If the Solana Spot ETF is approved, it will be a great opportunity to attract more capital from both institutions and retail investors, while strengthening Bitwise’s position in the digital asset management industry.