Solana Fund Hits $1B as Bitwise CEO Warns XRP Faces Structural Hurdles
Bitwise's Solana fund has reached $1 billion in assets under management, making it an institutional benchmark for layer-1 blockchains beyond Ethereum. The success of this product can be attributed to its integrated staking yield, which currently hovers around 6 to 7% annually.
The inflow dynamics reflect a broader paradigm shift, where institutional players are seeking digital assets with measurable economic fundamentals, such as transaction volumes and fees generated. Solana ticks every one of these boxes, making it an attractive option for allocators seeking risk-adjusted yield.
Bitwise CEO Hunter Horsley used the occasion to offer a candid take on XRP, stating that the primary obstacle to a comparable ETF is not solely regulatory timing but rather the asset's structural limitations. Unlike Solana, XRP does not generate a native staking yield accessible to holders through an ETP.
The success of Bitwise's Solana fund is part of a deeper trend: second-generation crypto ETFs are capturing an ever-growing share of institutional flows. These products incorporate staking, yield generation, or exposure to active protocols and are proving far more attractive than passive vehicles in a still-elevated interest rate environment.