Bitwise CIO Predicts Strong Year-End for Solana

Bitwise Chief Investment Officer Matt Hougan believes that Solana (SOL) will end 2025 on a high note. He points to increasing interest from exchange-traded product (ETP) flows and corporate treasury purchases. Hougan explains that Solana’s ecosystem has a scale and liquidity that means even small amounts of investment could significantly affect SOL’s price.

Bitwise CIO on Solana ETP and Treasury Adoption Set to Drive Demand

The Bitwise CIO mentioned in its recent memo that Solana’s market capitalization gives it a unique position among major cryptocurrencies. Bitcoin’s (BTC) market cap is about $2.3 trillion, and Ethereum (ETH) is around $534.6 billion, while Solana is currently at $121.6 billion. This means Solana is about 5% the size of Bitcoin and 23% the size of Ethereum. 

Meanwhile, Solana can benefit more from moves by institutional investors. As more products such as exchange-traded funds (ETFs) and corporate treasury strategies begin to include Solana, its potential for growth increases.

Notably, investors are increasingly interested in layer-1 blockchains beyond Bitcoin and Ethereum, with Solana becoming a popular choice. Solana offers fast transaction speeds, low fees, and a growing ecosystem for decentralized finance (DeFi) and non-fungible tokens (NFTs), making it an attractive option for institutions.

Solana Treasuries: A Growing Corporate Trend 

Notably, several companies have begun testing treasury plans built on Solana. This reflects growing trust from big institutions, as Solana has become one of the fastest and most used blockchains in the industry. 

A few days ago, Forward Industries Inc. took a decisive step into creating a treasury strategy centered on Solana. The firm recently raised $1.65 billion through private investment in public equity (PIPE). Interestingly, the move represents one of the largest corporate commitments to the Solana blockchain to date.

Hedge funds, venture-backed firms, and asset managers such as DeFi Development Corp (DFDV) and Upexi have already moved parts of their treasuries into Solana. 

Big Investors Grow Their Solana Holdings

Large investors are also helping boost Solana’s growth. In July, CoinGecko data showed that several publicly traded companies became major holders of the token.

At the top is Upexi Inc., which owns 1.9 million SOL bought at an average of $168.63 each. This is now worth $319.5 million, showing big unrealized profits. DeFi Developments Corp comes next with 1.18 million SOL purchased at $137.07, now worth $198.9 million.

In May, Toronto-based SOL Strategies began buying Solana, now owning 392,667 SOL. Meanwhile, Torrent Capital holds 40,039 SOL, purchased at $161.84, resulting in approximately $200,000 in profit.