- Solana is now the largest ETP for portfolio manager 21.co.
- Crypto Insights Group says Solana accounts for 38% of crypto hedge funds’ AUM.
- Experts say the price will soon get close to $700.
All eyes are on Solana as Bitwise becomes the latest player to file to launch exchange-traded funds tracking the fourth largest cryptocurrency.
Bitwise’s CEO announced the plans on X, which puts the investment firm alongside VanEck, 21shares, and Canary Capital in planning to debut the ETFs. The move comes as a recent survey by CoinShares found that nearly 20% of fund managers said Solana has one of the most compelling growth outlooks in crypto. A similar number of investors are already allocating funds to the asset.
“Solana is telling a story that smart money is coming this way,” Eliezer Ndinga, head of strategy at 21.co, told DL News.
At onchain capital manager 21.co, Solana is its largest staking exchange-traded product with $1.4 billion in assets under management, which is available to traders in Europe. Bitcoin comes in a distant second with $946 million.
Francisco Oliva-Velez, managing partner at Plaintext Capital echoed that optimism. “The growing preference for Solana reflects its advantages in speed, scalability and ecosystem development,” he told DL News.
Oliva-Velez pointed to an October 2024 survey that said Solana accounted for 38% of crypto hedge funds capital investments, with a slight bump from last month.
Focus remains strong as well. Solana is the most watched ecosystem by 42% of respondents.
Meanwhile, Ethereum is facing a stiff decline in interest. Exposure dropped to 26% from its June peak of 63%; while Bitcoin jumped to 13%.
“The sentiment has steadily shifted in the crypto investment landscape,” said Oliva-Velez.
Solana is up almost 18% over the past week to trade at $249, within shouting distance from its November 2021 $259 all-time high.
UK bank Standard Chartered projects that the cryptocurrency could climb close to $700 by the end of 2025.
Another key driver of the price is the prospect of a spot Solana exchange-traded fund. Bitwise, which already has a Bitcoin and an Ethereum ETF, filed to register a Solana ETF in Delaware this week.
Fox Business reported today that the US Securities and Exchange Commission is engaging in talks to greenlight Solana ETFs.
Metrics soar
“Solana has a clear-cut narrative and is optimising for one thing only: speed " said Ndinga.
This hyperfocus is garnering a lot of attention not only from investors but also users.
Activity across the ecosystem has been surging – even if some of it is fuelled by memecoins.
Active users skyrocketed nearly 1,500% from the beginning of the year, with new daily addresses notching an eleven-fold increase over the same time period. Year to date, the protocol’s net flow is up $1.6 billion.
“The numbers really are remarkable,” André Dragosch, European head of research at Bitwise, told DL News.
He pointed out that with the rise in onchain usage also came the rise in the price of SOL.
It trades for $249, a year-over-year rise of 350%. The asset is now less than 4% from its all-time high.
Ndinga told DL News he wouldn’t be surprised to see the asset trading for $500 in the next 12 to 18 months.
Experts like Geoffrey Kendrick, global head of digital assets research at Standard Chartered, said that the approval of a Solana ETF is more likely under a Trump administration.
Crypto market movers
- Bitcoin is up 3.8% over the past 24 hours to $97,198.
- Ethereum is up 7.7% over the past 24 hours to $3,320.
What we’re reading
- Solana-Based Memecoin Generator Pump.Fun Shatters Adoption, Usage Records ― Milk Road
- Satoshi filmmaker stands by claim that Peter Todd created Bitcoin: ‘There’s far more evidence’— DL News
- Microsoft about to buy $BTC? — Milk Road
- How Trump’s win will drive Wall Street’s crypto land grab — DL News
- Chill Guy Meme Shows TikTok’s Growing Role in Fueling Rise of Memecoins — Unchained
Pedro Solimano is a Markets Correspondent at DL News. Got a tip? Email him at psolimano@dlnews.com.