Isabella García
Solana could be the next major crypto to surge, according to Bitwise Chief Investment Officer Matt Hougan. In a memo to clients on Tuesday, Hougan said the combination of ETF inflows and corporate treasury purchases may create the perfect setup for what he calls “Solana season.”
He compared the situation to earlier rallies: Bitcoin climbed from $40,000 in January 2024 to nearly $125,000, and Ethereum tripled to almost $5,000 by August 2025 after seeing similar demand from ETFs and institutions.
“This is classic supply and demand,” Hougan wrote. “When investors buy more than the network issues, prices move higher.”
Why Solana Could Be Next
Several issuers, including Grayscale, VanEck, Franklin Templeton, Fidelity, Invesco/Galaxy, Canary Capital, and Bitwise itself, have applied for spot Solana ETFs in the U.S. The SEC must decide by October 10, potentially clearing the way for multiple product launches in Q4.
The first U.S. Solana fund already exists: REX-Osprey’s SSK ETF, which launched in July under the Investment Company Act of 1940. Unlike spot Bitcoin and Ethereum ETFs filed under the 1933 Act, the fund still holds actual SOL — with over 50% directly staked. Despite this, SSK has only pulled in $195.1 million, far behind Bitcoin and Ethereum ETFs with $5.8 billion and $8.4 billion in inflows.
Major Treasury Commitments Fuel the Bull Case
Adding momentum, Galaxy Digital, Jump Crypto, and Multicoin Capital pledged $1.65 billion this week to Forward Industries, a new public Solana treasury. The company plans to buy and stake SOL, joining other accumulators like DeFi Development Corp., Sol Strategies, and Upexi.
Forward named Kyle Samani, co-founder of Multicoin, as chairman, positioning him to become one of Solana’s most vocal advocates — much like Michael Saylor for Bitcoin or Tom Lee for Ethereum.
The Appeal: Speed, Costs, and Simplicity
For investors, ETFs and treasuries aren’t enough without a clear use case. In Ethereum’s case, inflows accelerated once stablecoin adoption expanded. For Solana, Hougan sees its speed and ultra-low costs as the main selling points.
Transactions finalize in milliseconds and cost less than a cent, with no reliance on Layer 2 networks — making the user experience more seamless than Ethereum. Solana is already the third-largest blockchain in stablecoin liquidity and fourth in tokenized assets, with 140% growth in tokenized AUM this year.
The Key Difference: Market Size
Hougan also highlighted Solana’s smaller size compared to the giants. Bitcoin’s market cap stands at $2.2 trillion, Ethereum at $522.6 billion, but Solana sits at just $119.4 billion.
That means capital inflows hit harder. A $1.65 billion Solana purchase could have the same impact as a $33 billion Bitcoin buy, Hougan explained, though Solana’s higher inflation rate (4.3%) reduces the effect compared to Bitcoin (0.8%) or Ethereum (0.5%).
Outlook: Keep Watching Solana
Despite risks, Hougan believes the setup is “extremely attractive.” With ETF decisions around the corner and major treasury purchases underway, he advised clients:
“Keep your eye on Solana in the coming months.”
