Crypto asset supervisor Bitwise has filed for a Solana (SOL) exchange-traded fund (ETF)—simply as the asset closes in on a brand new all-time excessive value.
The spot ETF, if accepted, would give traders publicity to SOL, the fourth-biggest cryptocurrency by market cap.
SOL is now buying and selling arms for simply over $255, according to CoinGecko information, after almost touching $259 on Thursday afternoon. At right now’s peak, Solana was lower than $1 away from its all-time excessive value set in 2021.
Nonetheless, Bitwise should file further kinds with the Securities and Trade Fee (SEC) to hunt approval. Its Wednesday submitting was with the state of Delaware—a really early step within the course of.
ETFs are funding automobiles that commerce on inventory exchanges and provides traders publicity to an underlying asset. The SEC accepted Bitcoin ETFs in January, resulting in a flood of institutional capital. The funds permit traders to purchase shares that observe the value of cryptocurrency.
Bitwise already has two different crypto merchandise buying and selling on U.S. inventory exchanges: its Bitwise Bitcoin ETF and Bitwise Ethereum ETF.
SOL’s native blockchain is utilized by builders to construct decentralized applications (dapps), meme cash, video games, and extra. It competes with Ethereum by providing cheaper and quicker transactions.
A lot of different asset managers have filed for a SOL ETF, together with Canary Capital, VanEck, and 21Shares. Solana ETFs have been regarded as a harder proposition given the SEC’s statements on Solana being an unregistered safety, nevertheless the election of Donald Trump has considerably modified the calculus there.
SEC Chair Gary Gensler announced Thursday that he’ll resign on January 20, 2025, the date that Trump begins his second time period. Trump ran on a pro-crypto platform and is anticipated to nominate a extra crypto-friendly SEC Chair.
Optimism round Solana’s ETF prospects has been cited as one of many key the explanation why SOL has been surging for the reason that election, with the value now up 30% within the final two weeks alone.
Edited by Andrew Hayward
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