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Crypto asset manager Bitwise has filed for a Solana (SOL) exchange-traded fund (ETF)—just as the asset closes in on a new all-time high price.
If approved, the spot ETF would provide investors with exposure to SOL, which is the fourth largest cryptocurrency in terms of market capitalization.
CoinGecko reports that SOL has risen to just over $255 after reaching nearly $259 in the afternoon of Thursday. At today's peak, Solana was less than $1 away from its all-time high price set in 2021.
Bitwise must still file more forms with the Securities and Exchange Commission to obtain approval. Its Wednesday filing was with the state of Delaware—a very early step in the process.
ETFs, or exchange-traded funds, are investment vehicles which trade on stock markets and provide investors with exposure to an asset. The SEC approved Bitcoin ETFs back in January, resulting in a surge of institutional investment. The funds enable investors to purchase shares that track the cryptocurrency price.
Bitwise has already two other crypto-products trading on U.S. exchanges: Bitwise Bitcoin and Bitwise Ethereum.
SOL's native blockchain is used by developers to build decentralized applications (dapps), meme coins, games, and more. It is cheaper and faster than Ethereum.
Other asset managers, such as Canary Capital VanEck and 21Shares, have also filed for an SOL ETF. Solana ETFs were thought to be a more difficult proposition given the SEC's statements on Solana being an unregistered security, however the election of Donald Trump has significantly changed the calculus there.
Gary Gensler, SEC Chair, announced that he is resigning on January 20, 2025. This will be the date when Trump starts his second term. Trump ran with a pro crypto platform, and will likely appoint someone more crypto-friendly as SEC Chair.
Optimism around Solana's ETF prospects has been cited as one of the key reasons why SOL has been surging since the election, with the price now up 30% in the last two weeks alone.
Andrew Hayward is the editor
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