Bitwise Takes Another Step Towards Launching a Solana ETF
The company continues its journey to obtain the necessary regulatory approval to approve the Solana ETF.
Bitwise has filed an application with the US Securities and Exchange Commission (SEC) to register the Bitwise Solana ETF via Form S-1, a move that seeks to strengthen its presence in the cryptocurrency exchange-traded fund market.
The move signals growing competition between companies like VanEck and 21Shares, which have made similar applications to track the performance of Solana (SOL).
However, the market faces significant regulatory challenges, as the SEC has deemed Solana and other cryptocurrencies like Cardano (ADA) and Polygon (MATIC) as securities.
Although the SEC recently announced its intention to amend its complaint against Binance to avoid determining Solana’s status as a security, it still refers to it as a security in other lawsuits such as the case against Coinbase.
Bitwise is aware of these potential risks, and explained in its filing that if Solana is classified as a security, it may need to modify the structure of the fund, or even liquidate it, to avoid violating securities laws.
In contrast, VanEck insists that Solana should be treated as a commodity, similar to Bitcoin and Ethereum, exempting it from securities regulations.
The future of these investment products remains tied to the development of the regulatory environment and the clarity of the regulatory authorities’ position on Solana.
This change could be crucial in determining the success of cryptocurrency ETFs and attracting investor interest.
