On Wednesday afternoon, Bitwise Investment, a distinguished asset manager and exchange-traded fund (ETF) issuer, submitted an S-1 form application for a spot Solana ETF to the US Securities and Exchange Commission (SEC) within the state of Delaware.
This move positions Bitwise within the race for regulatory approval to launch an index fund that invests in Solana, currently the fourth-largest cryptocurrency by market capitalization.
Bitwise Joins Race For Solana ETF
This application follows similar efforts by other asset managers, including VanEck and Canary Capital, which have also sought approval for their very own Solana ETF proposals in recent months.
Nevertheless, the trail to approval for these latest ETFs stays uncertain under the present SEC leadership. Up to now, Bitcoin is the one crypto recognized as a commodity, a move that has sparked frustration amongst investors on account of the paradox surrounding the regulatory status of other tokens.
Yet the landscape could change dramatically starting on January 20, 2025, when President-elect Donald Trump takes office. Trump has publicly pledged to remove SEC Chairman Gary Gensler on day one, whose leadership has been characterised by harsh regulatory measures that many within the crypto industry see as obstacles.
Speculation Grows Over Recent SEC Chair
Currently, there may be a variety of speculation in regards to the possible appointment of a latest SEC chair who might take a more pro-crypto stance, with many names on the table.
If this happens, the likelihood of those Solana ETF funds being approved in 2025 could increase significantly, potentially encouraging other asset managers to submit additional applications, perhaps for other digital assets out there.
As well as, the anticipated regulatory clarity that will include the Trump administration could act as a catalyst for growth within the crypto landscape, fostering greater investor confidence and paving the way in which for broader acceptance of digital assets in traditional financial markets.
On the time of writing, SOL is trading at $236, up 13% on a weekly basis and approaching its all-time high of $259 reached throughout the 2021 bull run.
Featured image from DALL-E, chart from TradingView.com