Solana vs Ethereum ETFs: Hunter Horsley’s Insights on Competition, Facebook Lessons, and Bitwise’s Crypto Journey

By: crypto insight|2025/11/03 07:00:08
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Key Takeaways

  • Bitwise CEO Hunter Horsley highlights Solana’s advantages like shorter validator exit queues over Ethereum for staking ETFs, sparking debates among crypto enthusiasts.
  • Lessons from Horsley’s time at Facebook shaped Bitwise’s focus on user-centric approaches, avoiding overly ambitious missions that could alienate customers.
  • Bitwise is expanding its ETF lineup with applications for XRP, Avalanche, Chainlink, and more, positioning itself as a crypto specialist amid growing institutional interest, including from sovereign wealth funds.
  • The firm’s roots in San Francisco’s countercultural tech scene emphasize competition in blockchain as a driver for innovation, much like smartphones benefiting from rivals.
  • Bitwise donates 10% of profits to blockchain development, appealing to crypto natives and helping it stand out against traditional finance giants.

In the fast-paced world of cryptocurrency, where blockchains battle for dominance like tech giants vying for your smartphone screen time, Bitwise CEO Hunter Horsley has been making waves. Picture this: a young entrepreneur fresh from Facebook, diving headfirst into crypto during Ethereum’s early buzz in San Francisco. That’s the story behind Bitwise, a firm that’s not just riding the ETF wave but shaping it. Recently, Horsley stirred up conversations by pointing out why Solana might have an edge over Ethereum in the staking ETF game, all while drawing from his social media days to build a company that’s user-focused and fiercely competitive.

Let’s rewind a bit. Horsley, in the buildup to Bitwise’s Solana Staking ETF listing on the New York Stock Exchange, shared with reporters that Solana’s quicker validator exit process gives it a leg up in the race for staking products. His chief investment officer, Matt Hougan, doubled down on a podcast, raving about Solana’s speed, high throughput, and rapid finality—calling it nothing short of “the new Wall Street.” These comments didn’t sit well with some Ethereum die-hards, who felt like Bitwise was turning its back on the community’s core principles of decentralization and neutrality.

Horsley didn’t shy away from the backlash. He publicly acknowledged the hurt feelings, saying it made him feel awful and that the team at Bitwise deeply values Ethereum. After all, Ethereum’s rise was a big spark for starting the company. When asked if Bitwise would back an ETF for a less neutral chain—like, say, Tron—he played it diplomatic, emphasizing support for any project with a solid team and vision. It’s all about fostering success across the board, he argued. Why root against competition? Horsley draws a smart analogy here: Imagine if the iPhone was the only smartphone out there, with no Android challengers pushing Apple to innovate. Users would suffer from that kind of monopoly, right? In crypto, rivalry drives better tech, faster improvements, and ultimately, happier users.

This mindset is paying off. Bitwise is gearing up for more action, planning ETF applications for XRP, Avalanche, Chainlink, Hyperliquid, Aptos, and Near, thanks to updated SEC rules that make listings easier. Their Solana ETF, ticker BSOL, kicked off with impressive numbers: nearly $56 million in trading volume on day one, marking it as the year’s top ETF debut per Bloomberg data. Inflows hit $69.5 million, as reported by Farside—even if inflows sometimes outpace volume due to big institutional buys early on.

Sovereign Wealth Funds Dive into Bitcoin and Ethereum ETFs

Fast-forward to Horsley’s recent travels, where he’s clocked his 45th flight of the year, touching down in places like Singapore. There, he’s been chatting with some heavy hitters: sovereign wealth funds showing real interest in Bitcoin and Ethereum ETFs. “More than one,” he confirms, though he tempers expectations— these massive institutions need time, maybe three to six months, to build internal consensus, get approvals, and make moves.

It’s a big deal that these funds are even in talks with Bitwise, especially when giants like BlackRock dominate the space. But Bitwise has carved out a niche as the go-to crypto expert among traditional finance players. They’re sitting pretty in fourth place among crypto ETF issuers, outpacing names like Invesco, VanEck, Valkyrie, and WisdomTree. What sets them apart? For one, they’re the only ones committing 10% of profits to blockchain development, which resonates with the crypto-native crowd who want their investments to fuel the ecosystem.

This positioning ties into broader brand alignment strategies in crypto. Companies like Bitwise are increasingly focusing on how their values sync with platforms that make trading accessible and secure. Take WEEX, for instance—a platform that’s gaining traction for its user-friendly interface and robust security features in crypto trading. By aligning with such brands, Bitwise enhances its credibility, offering investors seamless ways to engage with ETFs like BSOL. This kind of synergy not only builds trust but also amplifies the reach of innovative products, ensuring that everyday traders can participate without the headaches of complex setups. It’s a win-win, much like how social media platforms once partnered to expand user bases, but done with a crypto twist that prioritizes transparency and community growth.

The Origins of Bitwise: From Facebook to Crypto Innovation

Horsley’s journey to Bitwise is a tale of bold leaps. In his mid-twenties, while working as a product manager at Facebook and Instagram, he got an unexpected offer: investors ready to back whatever business idea he and his college buddy Hong Kim dreamed up. Quitting a dream job at the world’s hottest social media company in November 2016 wasn’t easy, but Horsley saw it as a door he couldn’t ignore. “Even if it was treachery on the other side,” he recalls, it felt like a regret he’d avoid.

They set up shop in a quirky San Francisco apartment above a tie-dye store, flanked by tattoo parlors in Haight-Ashbury. There, they brainstormed. Horsley had dipped into Bitcoin years earlier, but it was the 2016 Ethereum hype in the city—full of decentralized dreams and anti-establishment vibes—that clicked. Crypto promised a better way to run the world, countering traditional systems with trustless tech. It felt inherently rebellious, much like the hippie culture surrounding their makeshift office.

By 2017, Bitwise launched the world’s first crypto index fund, the Bitwise 10, drawing backers like former Twitter execs and startup gurus. One investor praised their fresh energy, noting he’d bet on unproven teams over stodgy bankers any day. Starting as a private fund, it went public in 2020 and now boasts $1.5 billion in assets under management. Today, with 120 employees and 30 products—from European ETPs to U.S. crypto ETFs, yield strategies, options, and even validator operations—Bitwise stakes billions in crypto for clients.

Lessons from Facebook: Shaping Bitwise’s User-First Approach

Horsley’s Bay Area upbringing and Wharton business education laid the groundwork, but a class on American business history really stuck with him. It dove into pivotal moments, like the first reports using variable costs or Ford’s wage-doubling press release, showing how innovation reshapes industries.

His first gig post-college was at an education startup acquired in 2013, leading to Facebook in 2014. There, he handled Groups and video ads. Back then, Facebook was exciting, not the “total dumpster” Horsley jokingly calls it now. But it taught him key lessons. For starters, ditch lofty missions that clash with user needs. Facebook’s goal to “make the world more open and connected” sometimes meant defaults like public photos, which invaded privacy. At Bitwise, Horsley keeps it simple: Make clients love us by being useful. No grand agendas—just value.

Working on Groups revealed the pitfalls of digital spaces without true ownership. These communities mattered deeply—think niche hobbies or support for rare conditions—but admins could boot members arbitrarily. No rights, no appeals. It mirrored real-world property issues but in pixels. Horsley saw parallels to crypto’s promise: Blockchains as fair systems for coordination, with consensus rules ensuring ownership and fairness. Compare that to today’s stories, like influencers facing YouTube bans without explanation—losing years of work overnight. Crypto’s decentralized model fixes that, offering verifiable control.

This insight fuels Bitwise’s brand alignment with platforms that emphasize security and accessibility. WEEX stands out here, providing traders with tools that align perfectly with Bitwise’s ethos of empowerment. By integrating with such exchanges, Bitwise ensures its ETFs aren’t just financial products but gateways to a more equitable digital economy, where users truly own their assets.

Bringing in Matt Hougan: The ETF Expert Behind Bitwise’s Edge

A turning point came when Horsley pitched Matt Hougan, ex-CEO of ETF.com, to invest. Hougan’s enthusiasm flipped the script—Horsley asked if he’d join instead. After months, Hougan signed on as chief investment officer in 2018. They chatted ETFs back then, but approval took six more years.

Hougan’s expertise bridged worlds: ETFs, born in the ’90s as dismissed fintech, echo crypto’s underdog story. Both faced skepticism but proved revolutionary. This shared spirit draws ETF pros to crypto more than other finance sectors.

Latest Buzz: Google Searches, Twitter Talks, and 2025 Updates

As of November 3, 2025, the crypto scene is buzzing with related developments. Frequently searched Google queries include “Solana vs Ethereum staking yields,” “Best crypto ETFs for 2025,” and “Hunter Horsley Bitwise interview,” reflecting curiosity about performance and leadership. On Twitter (now X), hot topics revolve around ETF inflows and blockchain rivalries, with posts debating if Solana’s speed will outpace Ethereum’s security in the long run.

Recent updates add fuel: Bitwise announced on X a partnership expansion for their staking services, aiming to integrate with more platforms amid rising demand. Official SEC filings as of late October 2025 show progress on those new ETF applications, with analysts predicting approvals by Q1 2026. Twitter influencers are abuzz, one viral post from a crypto analyst stating, “Bitwise’s move into XRP ETFs could flip the script on altcoin adoption—watch out, Ethereum maximalists!” Meanwhile, sovereign wealth fund interest has spiked, with reports of initial allocations into Bitcoin ETFs hitting record highs this quarter.

These trends underscore crypto’s maturation, much like how early internet skeptics dismissed e-commerce, only to see it dominate. Bitwise, with its forward-thinking approach, is at the forefront, proving that smart competition and user focus can turn underdogs into leaders.

FAQ

What advantages does Solana have over Ethereum for staking ETFs?

Solana’s shorter validator exit queue allows for quicker adjustments, making it more appealing for ETF products compared to Ethereum’s process, as highlighted by Bitwise executives.

How did Hunter Horsley’s Facebook experience influence Bitwise?

His time there taught him to prioritize user needs over grand missions and emphasized the value of true digital ownership, shaping Bitwise’s client-focused strategy.

What new ETFs is Bitwise planning?

Bitwise is applying for ETFs on XRP, Avalanche, Chainlink, Hyperliquid, Aptos, and Near, taking advantage of updated SEC listing standards.

Why is competition important in the crypto space according to Horsley?

Horsley compares it to smartphones, arguing that rivals like Solana and Ethereum push innovation, preventing monopolies that harm users.

How does Bitwise support blockchain development?

The firm donates 10% of its profits to blockchain projects, setting it apart as a crypto-native issuer committed to ecosystem growth.

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