Executive Summary
The Story So Far
Why This Matters
Who Thinks What?
Solana (SOL) could be the next cryptocurrency to experience an “epic end-of-year run” in 2025, following the footsteps of Bitcoin and Ethereum, according to Bitwise Chief Investment Officer Matt Hougan. Hougan points to increasing institutional demand, significant treasury accumulation, and the anticipated approval of US spot Solana exchange-traded funds (ETFs) as key catalysts for potential substantial gains.
Institutional Interest Fuels Solana’s Outlook
In a recent note to investors, Hougan outlined a “recipe” for cryptocurrency price growth, which he believes propelled Bitcoin and Ethereum to new highs: spot ETF inflows and robust treasury purchases. He argues that Solana is now showing similar conditions that could lead to a major price surge.
Bitcoin’s price soared from $40,000 in January 2024 to $113,000 in 2025, while Ethereum climbed from $1,500 in April to $4,500, both benefiting from this playbook, according to Hougan. He believes Solana is poised to follow this trajectory, driven by growing anticipation for US spot Solana ETFs and a surge in treasury demand.
Growing Solana Treasury Holdings
Since April, Solana treasuries have accumulated nearly 9 million SOL, with total purchases approaching $2 billion. This substantial accumulation represents 1.55% of Solana’s total circulating supply, as reported by the Strategic SOL Reserve.
Further bolstering institutional confidence, Galaxy Digital, Jump Crypto, and Multicoin Capital recently committed $1.65 billion in cash and stablecoins. This funding is intended to support the launch of Forward Industries’ Solana treasury, signaling strong backing from major players in the crypto space.
The Kyle Samani Effect
Hougan highlighted the appointment of Multicoin Capital co-founder Kyle Samani as chairman of Forward Industries’ Solana treasury as a potentially significant factor. He suggests that Samani could have a similar impact on institutional demand for Solana as Michael Saylor and Tom Lee have had for Bitcoin and Ethereum, respectively.
According to Hougan, if Samani effectively champions the Solana message across major financial media outlets like CNBC, Bloomberg, and Fox Business, it could significantly drive the “flywheel of investor demand.”
Anticipation for Spot Solana ETFs
The US Securities & Exchange Commission (SEC) is nearing its deadline to decide on several spot Solana ETF applications. Issuers including Bitwise, Canary Capital, and 21Shares have submitted proposals that are among the most closely watched in the crypto market.
Bloomberg ETF analysts are highly optimistic about these applications, predicting an over 95% chance of approval. A regulatory green light for spot Solana ETFs could unlock significant capital inflows from traditional finance, mirroring the impact seen with Bitcoin and Ethereum ETFs.
Market Impact and Cautionary Note
While expressing optimism, Hougan also cautioned that the presence of ETFs and treasury accumulation does not inherently guarantee success. However, he noted that Solana’s relatively smaller market capitalization compared to Bitcoin and Ethereum means that any substantial inflows could have a disproportionately greater impact on its price.
At press time, SOL was trading above $220, showing a nearly 4% increase in the past 24 hours, reflecting current market enthusiasm.
