The launch of spot Solana exchange-traded funds (ETFs) seems imminent following Bitwise’s recent application with the US Securities and Exchange Commission (SEC).
On September 26, Bitwise CEO Hunter Horsley announced that the company had submitted its Form 8-A to the SEC. This filing is a crucial step enabling an ETF to start trading once approval is obtained.
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Other Solana ETF Issuers Make Additional Amendments With SEC
Horsley’s announcement bolsters increasing market optimism regarding the proximity of a spot Solana ETF launch.
This comes amidst a series of amendments from various issuers, including Grayscale and Franklin Templeton, indicating heightened interaction between asset managers and the financial authority.
Nate Geraci, president of ETF advisory firm Nova Dius Wealth, mentioned that these amendments could expedite the SEC’s evaluation process.
He anticipates that the regulator might grant approvals within two weeks, aligning with its usual timelines.
Bloomberg ETF analyst James Seyffart shared this perspective, noting that the coordinated efforts reflect active discussions between issuers and the SEC.
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Simultaneously, this surge in activity corresponds with a growing institutional interest in Solana-related investment products.
The REX-Osprey Solana Staking ETF, which debuted in June as the first Solana-specific fund in the US, has already drawn more than $300 million in investments.
In a similar vein, Bitwise reported $60 million of new funds entering its European Solana Staking ETP this week, reflecting investor confidence in Solana’s long-term prospects.
Market analysts noted that this influx of institutional funds could significantly influence Solana’s market dynamics.
Bitwise Chief Investment Officer Matt Hougan emphasized that Solana “has all the ingredients for an extraordinary end-of-year surge.” He cited the network’s robust activity and increasing institutional involvement as major factors driving its potential growth.
Additionally, Hougan pointed out that Solana’s relatively small size makes it more susceptible to new capital, which could greatly affect its pricing.
“As of September 7, bitcoin’s market cap was $2.22 trillion, Ethereum’s market cap was $519 billion, and Solana’s market cap was $116 billion. In simpler terms, Solana represents 1/20th of bitcoin’s size and is less than 1/4th of Ethereum’s size,” he stated.
Given this scenario, he elaborated that a $1.6 billion investment in Solana exposure could equate to over $30 billion entering Bitcoin.
