In spite of the regulatory uncertainties, Matt Hougan, Chief Investment Officer at Bitwise, remains hopeful about the prospects for exchange-traded funds (ETFs) related to Solana and meme coins. His optimism persists even as the US Securities and Exchange Commission (SEC) has been hesitant regarding these investment vehicles.
Earlier this year, the SEC’s approval of Bitcoin and Ethereum ETFs fueled optimism for other cryptocurrencies to follow suit. However, the outlook for Solana has not been as encouraging.
Bitwise Maintains Enthusiasm for Solana ETFs
In August, the SEC rejected the Chicago Board Options Exchange’s applications for two proposed Solana spot ETFs, which temporarily diminished their chances of approval. This decision came after extensive discussions regarding whether Solana qualifies as a security.
Read more: Solana ETF Explained: What It Is and How It Works
Despite these setbacks, Hougan remains undaunted.
“The [SEC] quite literally dismissed the initial two applications [for Solana ETFs]. That doesn’t imply the end of the road. Keep in mind, Bitcoin ETFs faced rejections for a decade, and that wait was worthwhile,” Hougan remarked.
His positive outlook is bolstered by Bitwise’s strategy in SEC submissions, which typically feature extensive data designed to illustrate market steadiness and safeguards against manipulation.
“We’re incredibly enthusiastic about the Solana ecosystem. We believe it’s resilient. Therefore, we are conducting the necessary research on that and some other assets. The timing for our filings will depend on how quickly we can complete that work and what we uncover,” Hougan shared in a video discussion.
Currently, only VanEck and 21Shares have submitted applications for Solana spot ETFs. Hougan hinted that Bitwise may soon align with this group, taking additional time to meet the SEC’s rigorous criteria.
Moreover, Hougan is upbeat about the broader adoption of ETFs for various cryptocurrencies. He posits that the success seen in Europe, where exchange-traded products (ETPs) provide investors with secure, low-cost access to digital assets, could be replicated in the US.
Ultimately, Hougan believes that the crypto sector has entered an ETF era. He expresses that securing the first Bitcoin ETF approval was much more challenging than subsequent approvals, making it comparatively simpler to expand from that initial point.
Read more: 11 Top Solana Meme Coins to Watch in September 2024
Additionally, Hougan’s optimistic view extends to meme coins, which have often been seen with skepticism due to their volatile characteristics. While they do not currently fit within Bitwise’s framework, he perceives the potential for meme coin ETFs.
“Numerous ETFs are utilized as trading instruments and are wildly popular. Why not provide individuals the opportunity to engage with meme coins through a secure, familiar ETF structure? Overall, I think that would be fantastic,” he suggested.
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