Finance
Bitwise sparks industry scramble with Solana ETF launch
Published by Global Banking & Finance Review®
Posted on November 11, 2025
5 min readLast updated: January 21, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on November 11, 2025
5 min readLast updated: January 21, 2026
Bitwise's launch of the first U.S. spot Solana ETF has disrupted the crypto market, attracting $420 million in a week and forcing competitors to adapt.
By Suzanne McGee
(Reuters) -Crypto firm Bitwise Asset Management's successful push to launch the first U.S. spot Solana ETF while the Securities and Exchange Commission was shut down has upended the regulatory playbook and forced competitors to rethink their product plans, said industry executives.
On October 28, Bitwise launched Solana Staking ETF which tracks the spot price of the sixth largest cryptocurrency, using an untested process that does not require a formal SEC sign-off. That gave Bitwise the first-mover advantage in what analysts see as the next biggest market for single crypto ETFs, angering competitors who took a more cautious approach and are now scrambling to catch up, said half a dozen industry sources.
The product has already attracted $420 million in its first week, LSEG data shows. Such "altcoin" ETFs could attract $14 billion during their first six months, of which $6 billion could flow into Solana products, JPMorgan has predicted.
"We do like firsts at Bitwise," said Matt Hougan, the firm's chief investment officer, adding: "We are following the rules." An SEC spokesperson did not respond to a request for comment amid the ongoing U.S. government shutdown.
'STAKES ARE HIGH'
Bitwise's maneuver has overturned the playbook for multiple other issuers waiting to launch altcoin ETFs, said the sources.
Grayscale Investments the next day converted its existing private fund to an ETF via the same route. Others including VanEck, Fidelity and Invesco have recently adjusted their registration statements to follow Bitwise's lead. They and other firms have also filed to launch ETFs tied to Ripple's XRP, public filings show.
Multiple other issuers, meanwhile, are evaluating whether they want to take the same risks, the people said.
Competition to grab investor attention by launching first is particularly intense when launching products that have few other differentiating factors, say analysts.
They point to ProShares Bitcoin ETF which won SEC approval in 2021 only days ahead of rivals. The bitcoin futures ETF has never relinquished its dominance, with $2.8 billion in assets compared to only $40 million for its closest rival.
"The stakes are high for anyone who can seize first-mover advantage," said Ben Slavin, global head of ETFs at BNY, the custodian for many asset managers. "Even a day's advantage" can determine who captures millions of dollars of fees, he said.
SHUTDOWN PROBLEMS
In mid-September, the SEC allowed exchanges to adopt generic listing standards for crypto ETFs, expediting what had been a lengthy review. That opened the door for dozens of ETFs waiting in the wings to launch without an official SEC nod.
Many issuers, though, still wanted the customary SEC blessing and were hesitant to test the new process with the looming government shutdown threatening to shutter the agency, sources said.
The day before that happened on October 1, the SEC said issuers could launch a product while it was shut down provided they amended their filing to warn investors that it would automatically become effective after 20 days. Still, it cautioned to "consider carefully" the risks. These could include the agency intervening to suspend or pull the product if it found problems, ETF issuers and lawyers said.
That left the final decision to issuers and exchanges. Cboe Global Markets advised issuers to await the SEC's nod, according to four of the sources granted anonymity to discuss regulatory matters. The New York Stock Exchange, meanwhile, was willing to go ahead.
On October 23, Bitwise said in filings it had shifted its proposed ETF from CBOE to NYSE and it began trading five days later. A spokesperson for Bitwise said "it was important to bring BSOL to the world’s largest and most experienced ETP listing venue for a product this unique."
Using the same process, Canary Capital also that day launched the first new ETFs tied to spot litecoin and hedera, two much smaller altcoins, on the Nasdaq Stock Market.
"A very unique constellation of events left us at this point where some issuers felt comfortable moving forward," said Thomas Erdosi, head of product at CF Benchmarks, which provides indices for investors in crypto, including other crypto ETFs.
NYSE declined to comment. Cboe did not respond to requests for comment. Craig Salm, Grayscale's chief legal officer, said its engagement with the SEC at the point the firm converted its fund was "essentially complete."
The staggered altcoin launches are a departure from the previous blanket approvals the SEC granted bitcoin and ether ETFs - an approach many issuers expected it to adopt for altcoins. Some issuers privately complained the Solana process was unfair and disorderly, although others said Bitwise simply followed the rules.
"If you don't move, you lose the opportunity to win," said one.
(Reporting by Suzanne McGee; additional reporting by Anirban Sen in New York; editing by Michelle Price and Susan Fenton)
An ETF, or Exchange-Traded Fund, is a type of investment fund that is traded on stock exchanges, similar to stocks. It holds assets such as stocks, commodities, or bonds and generally operates with an arbitrage mechanism.
Solana is a high-performance blockchain platform designed for decentralized applications and crypto projects. It is known for its fast transaction speeds and low costs, making it a popular choice for developers.
First-mover advantage refers to the competitive edge gained by the first significant occupant of a market segment. It allows a company to establish brand recognition and customer loyalty before competitors enter.
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