TLDR
- Bitwise CIO predicts a strong Q4 for Solana, similar to BTC and ETH, driven by ETF inflows and corporate treasury purchases.
- Solana is primed for an end-of-year rally with growing ETF filings and substantial treasury buys, including $1.65 billion commitment.
- Solana’s faster transactions and lower costs position it to capture more decentralized finance and stablecoin markets.
- Despite its smaller market cap, Solana could see big price moves with relatively modest inflows compared to Bitcoin and Ethereum.
Bitwise Chief Investment Officer Matt Hougan has predicted a strong finish for Solana (SOL) in 2025, driven by growing exchange-traded product (ETP) inflows and corporate treasury purchases. Hougan believes that Solana’s market conditions mirror those that have fueled impressive gains for Bitcoin and Ethereum in recent months.
In a memo to clients, Hougan pointed out that the combination of ETP inflows and institutional adoption has been a proven recipe for crypto market success. He compared Solana’s upcoming potential to Bitcoin’s rise from $40,000 to nearly $125,000 in early 2024 and Ethereum’s surge to almost $5,000 in mid-2025. Hougan sees Solana poised to follow this path, benefiting from similar market conditions.
Solana Path to Strong Returns
Solana is one of the most anticipated cryptocurrencies for the final quarter of 2025, according to Hougan. He highlighted the significant number of issuers, including Grayscale, VanEck, and Bitwise itself, who have filed for spot Solana ETPs in the U.S. The SEC is expected to rule on these filings by October 10, with multiple Solana ETP launches likely in Q4.
In July, REX-Osprey launched the first U.S. ETF offering Solana exposure, attracting a modest $195.1 million in net inflows. While smaller than the $5.8 billion and $8.4 billion seen for Bitcoin and Ethereum ETFs, the fund’s existence signals growing institutional interest in Solana.
According to Hougan, if more traditional spot Solana ETPs are approved, they could significantly increase Solana’s liquidity and price movement.
Corporate Treasury Buys Fuel Solana’s Potential
In addition to ETP inflows, Hougan pointed to a large-scale commitment from Galaxy Digital, Jump Crypto, and Multicoin Capital, who pledged $1.65 billion to Forward Industries, a newly-formed Solana treasury company. The company will buy and stake Solana, further increasing its market depth.
The formation of Solana-focused treasury companies mirrors Bitcoin’s path, where companies like MicroStrategy and Strategy have accumulated large amounts of BTC to add to their balance sheets.
By following this strategy, Solana is positioning itself as a potential long-term asset in corporate treasuries, similar to Bitcoin and Ethereum.
Solana Competitive Edge in the Blockchain Space
What sets Solana apart is its technical design, which enables it to process far more transactions per second (TPS) than Ethereum while keeping costs extremely low. With the recent approval of a major upgrade that will reduce transaction finality time from 12 seconds to just 150 milliseconds, Solana is set to become one of the fastest blockchains in the world.
Despite criticisms of Solana’s higher centralization, its fast transaction times and low costs make it particularly attractive for decentralized finance (DeFi) applications, stablecoins, and tokenized assets.
Solana currently ranks third in stablecoin liquidity and fourth in tokenized assets, with tokenized asset AUM up 140% in 2025. These technical strengths position Solana to capture more market share as demand for efficient blockchain solutions continues to grow.
Solana Growth Potential Amid Smaller Market Cap
Although Solana’s market cap is significantly smaller than Bitcoin’s or Ethereum’s, this could work in its favor. With a market cap of just $116 billion as of September 2025, Solana is 1/20th the size of Bitcoin and less than 1/4th the size of Ethereum. Hougan argues that even a small inflow into Solana could result in significant price movements due to its smaller market cap.
For instance, the $1.65 billion commitment to Solana treasury companies like Forward Industries would be the equivalent of $33 billion in Bitcoin purchases. While Solana’s annual inflation rate is higher than Bitcoin’s and Ethereum’s, the potential for significant price increases in the coming months remains high.
With the stage set for Solana’s growth, Hougan suggests that investors keep a close eye on the cryptocurrency in the final quarter of 2025, as the combination of ETP launches and corporate treasury buys could trigger substantial price movements.
