Bitwise Withdraws Solana ETF Filing: Market Reaction

Bitwise Asset Management officially withdrew its 19b-4 filing for a spot Solana ETF on November 26, 2025. The decision follows direct guidance from the U.S. SEC, which requested issuers to retract altcoin ETF applications that include staking features. Despite the withdrawal, Bitwise continues to operate its highly successful Bitwise Solana Staking ETF (BSOL).

The move does not affect existing investors in BSOL, which remains the fastest-growing single-asset crypto ETF in history, reaching over $587 million in assets within weeks of launch.

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Why Bitwise Withdrew the Solana ETF Filing

The SEC currently views staking rewards as potential securities, creating classification issues under the Investment Company Act of 1940. Rather than face prolonged delays, Bitwise chose a strategic withdrawal to refine its filing structure.

Preparation for a Stronger Relaunch

Industry experts believe this is a tactical pause, not cancellation. Bitwise aims to resubmit a cleaner application in early 2026, potentially separating staking from the core spot product to meet SEC requirements.

BSOL Continues Strong Growth Despite Withdrawal

Just hours after the filing withdrawal news, on-chain data showed Bitwise withdrew another 192,865 SOL ($26.39 million) from Coinbase Prime. This increased BSOL total holdings to 4,317,187 SOL, worth approximately $587 million.

Key highlights of BSOL performance:

• First U.S. ETF with 100% active staking

• Current staking yield ≈ 7.1–7.4% APY

• Management fee only 0.20% (waived on first $1B)

• 19 consecutive days of net inflows totaling $476 million

Read Also: 21Shares Launches Solana ETF TSOL: How to Buy and What to Know

Immediate SOL Price Reaction and Recovery

Solana (SOL) price dipped 2.8% within hours of the withdrawal announcement, briefly touching $132. However, buying pressure quickly emerged, pushing SOL back above $136 within 24 hours.

Current market stats:

• SOL price: $136.40 (+1.1% in last 24h)

• SOL futures open interest: $3.82 billion (all-time high)

• 30-day ETF inflows: $621 million (highest among all crypto ETFs)

Updated Solana ETF Approval Odds 2025–2026

Despite the withdrawal, analyst confidence remains extremely high:

Analysts cite DTCC listing of Solana futures ETFs and Franklin Templeton’s upcoming multi-asset fund as major catalysts.

How Traders Are Positioning in SOL Futures

Professional traders are using the uncertainty to build both long and short positions in perpetual futures markets. Funding rates on major exchanges turned slightly positive (+0.008%), indicating growing long bias during dips.

Popular strategies right now:

• Buying the dip below $130 with tight stops

• Selling premium in weekly SOL options expiring December

• Hedging spot SOL holdings with short futures during news events

Read Also: Solana ETF: Will $SOL Pump After Approval?

Why Solana Remains a Top Altcoin for Institutions

Solana continues to dominate institutional flows thanks to:

• Fastest blockchain with 65,000+ TPS capability

• $2.85 billion annual protocol revenue (higher than Ethereum in 1970s equivalent)

• Growing DeFi TVL now exceeding $18 billion

• Major brands (Visa, Google, Circle) building on Solana

These fundamentals explain why ETF withdrawals have minimal long-term impact.

Best Platforms for SOL Futures and Staking

Traders seeking exposure during this transitional period are increasingly using centralized platforms that combine spot, futures, and staking in one place. Bitrue stands out with:

• Up to 100x leverage on SOL/USDT perpetual contracts

• Competitive funding rates and deep liquidity

• Native SOL staking pools offering up to 10% APY

• Zero-fee deposits and fast withdrawals

Read Also: Is the Solana ETF Decision Delayed Again?

Conclusion

The Bitwise Solana ETF filing withdrawal is a regulatory speed bump, not a roadblock. Existing products like BSOL prove massive institutional demand, while improving approval odds signal spot ETFs are likely coming in 2026. SOL price action remains constructive above $130, with analysts targeting $180–$220 in Q1 2026 on successful launches.

For active traders, now is an excellent time to explore SOL perpetual futures and staking combinations. Platforms like Bitrue provide all the tools needed to navigate volatility and generate yield in any market condition. Start positioning for the next leg up. Explore professional SOL trading and staking on Bitrue today!

FAQ

Why did Bitwise pull its Solana spot ETF filing?

The SEC pushed issuers to retract filings with staking components, so Bitwise stepped back to avoid delays and prepare a cleaner structure.

Does the withdrawal affect BSOL investors?

Not at all. BSOL keeps running and remains the fastest-growing single-asset crypto ETF with staking yields above 7%.

How did the market react right after the withdrawal?

SOL briefly slipped to $132 but quickly rebounded above $136 as buyers stepped in and open interest hit an all-time high.

What are the updated odds of Solana ETF approval?

Analysts remain bullish, with estimates ranging from 90%–95% in 2025 and up to 99% in early 2026.

How are pro traders positioning during this uncertainty?

They’re using dip-buys under $130, selling weekly option premium, and hedging spot SOL with short futures during news volatility.

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