Ark to Launch Solana Ecosystem Venture Fund! Cathie Wood: U.S. Regulatory Easing is Key for Open Crypto ETF Staking

05/26/2025

ARK Invest Founder Cathie Wood Discusses Solana’s Dominance Over Ethereum at “Solana Ship or Die” Conference

On May 24, Cathie Wood, founder of ARK Invest, and Eric Balchunas, an ETF analyst at Bloomberg, held a discussion at the “Solana Ship or Die” conference regarding various topics, including the substantial advancement of Solana developers over Ethereum, the relaxation of U.S. regulations, and the opening of staking for crypto ETFs. Wood further revealed that ARK is not only set to launch a “Solana Ecosystem Venture Fund” but is also preparing to introduce the world’s first “Active Crypto Fund,” which is expected to attract more traditional asset managers and accelerate the integration of Web3 with traditional financial markets.

Balchunas’ Online Poll: Solana Outshines Ethereum and XRP

Balchunas opened the discussion by stating that although it was his first time participating in a Solana event, he has been significantly attentive to the crypto industry over the past two years. He also shared data from a poll he conducted on Twitter (X), asking users which they would choose among Ethereum, Solana, and XRP. The results were as follows:

Solana: 46%
Ethereum: 38%
XRP: 16%

Balchunas commented:

“From a consumer perspective, this is quite reasonable.”

Solana Developers Surpass Ethereum by Targeting General Users

Wood added that Solana has demonstrated “antifragility” throughout the entire bull-bear cycle, with the number of developers surpassing Ethereum in July 2024, making it the most favored platform among developers. She emphasized:

“ARK has always advocated following the developers. Ethereum is increasingly leaning toward institutional applications, while Solana continues to attract general users with low fees and rapid optimizations.”

Crypto ETF Staking Yields May Be Attractive, but Regulatory Relaxation Remains Key

Regarding whether a Solana spot ETF will be launched in the U.S. market, Wood expressed strong anticipation, although the key issue remains whether U.S. regulators will allow crypto ETFs to support staking mechanisms. However, if the U.S. opens staking for crypto ETFs in the future, the yields would be more appealing.

She pointed out that the crypto ETF launched by Canadian asset management firm 3iQ allows staking of SOL and ETH within the ETF. The current annualized returns for SOL and ETH in the 3iQ crypto ETF are as follows:

SOL: 6-8%
ETH: 2-3%

From Rejection to Discussion: New SEC Policy Shift

Balchunas mentioned that Grayscale has indicated a much more relaxed atmosphere when meeting with the U.S. Securities and Exchange Commission (SEC), shifting from outright rejection to discussing viable options. Wood also believes: “Dropping the lawsuit is the first step; the entire regulatory atmosphere is changing.”

Wood continued on the topic, emphasizing:

“If even BlackRock wants to push for a Solana ETF, it should signify that there really is an opportunity in this market.”

Solana Poised to Be Included in Tech ETFs, Other Institutions Also Set to Invest

Wood stated that while Solana is not like stocks, as a digital asset, it will likely be included in tech or fintech-type ETFs in a manner similar to stocks in the future. She said:

“In the future, not only ARK will be involved; other large asset managers may follow suit.”

Solana’s Low Fees and Excellent User Experience Attract Kraken

Wood shared that purchasing Bitcoin in the past required creating a wallet, which was cumbersome, and transaction fees could be as high as 1.5%, an unacceptable figure for traditional financial players. In contrast, Solana features low fees and fast transactions, making it significantly more attractive; even the exchange Kraken has chosen to issue tokenized stocks of NVIDIA and Tesla on Solana. This indicates that Solana has become the blockchain platform of choice for general consumers.

ARK Launching Solana Ecosystem Venture Fund, Future Plans for Active Crypto Fund

Wood announced that ARK will also establish an innovation center in Florida and launch an early-stage blockchain venture fund focused on the consumer-oriented Solana ecosystem. Furthermore, they plan to introduce an “Active Crypto Fund” that leverages on-chain analytics to generate excess returns.

Crypto Assets as an Insurance Mechanism: Web3 Reshaping the Global Financial System

Wood shared, “I just had a conversation with a friend from Pakistan who said only 300,000 people have brokerage accounts there, but 50 million have crypto wallets.” She noted that this exemplifies the tangible impact of blockchain. She further believes that crypto ETFs will become a bridge for general users to enter Web3, while crypto wallets serve as the ticket to decentralization. She stated:

“In case traditional finance faces issues, this will be your insurance.”

(Is there a sign that Solana ETFs will be listed this year? Cboe submits another application to the SEC for listing.)

Risk Warning

Investing in cryptocurrencies involves high risks, and their prices may fluctuate dramatically, potentially resulting in the loss of your entire principal. Please assess risks cautiously.