Bitwise CIO Calls Solana an ‘Explosive’ Two-Way Bet: Here’s Why
Matt Hougan, Chief Investment Officer at Bitwise Asset Management, has described Solana (SOL) as an “explosive two-way bet,” comparing the current setup to Bitcoin’s early institutional adoption phase.
Hougan, who has long been known for his bullish stance on digital assets, said in a recent interview that Solana is at the intersection of innovation, capital inflow, and volatility, making it one of the most exciting opportunities in the crypto market.
The ‘Explosive’ Setup
According to Hougan, Solana’s recent fundamental and structural upgrades have made it a magnet for both institutional and retail investors.
“Solana is the only blockchain today combining real throughput, growing developer activity, and rising institutional demand,” he said. “That combination creates an explosive two-way setup — massive upside potential, but with real volatility risk.”
Bitwise has been increasing its exposure to Solana through various investment products, including the Bitwise 10 Crypto Index Fund, where SOL now ranks among the top three holdings.
ETF Demand and Institutional Flows
Hougan noted that ETF demand could be the next major catalyst. Following the approval of Bitcoin and Ethereum spot ETFs earlier this year, speculation has been mounting about a potential Solana ETF — with filings already surfacing in major jurisdictions.
“Once a Solana ETF is approved, you’ll see massive liquidity inflows similar to what we saw in Bitcoin. That could reset the entire valuation structure,” Hougan stated.
Data from CoinShares shows that Solana-linked investment products saw over $90 million in inflows in the past month — the strongest among all altcoins.
Network Strength and Ecosystem Growth
The Solana network continues to demonstrate strong performance metrics, processing more than 70 million transactions per day with near-instant finality and minimal fees.
DeFi and NFT activity on Solana have both rebounded sharply, with total value locked (TVL) surpassing $9.2 billion in October. Meanwhile, stablecoin supply on the network has surged past $15 billion, underscoring its role as a high-throughput settlement layer.
Developers have also been active, launching new infrastructure projects such as Pacifica, Jupiter v3, and Helius Core, further expanding the Solana ecosystem.
Why It’s Still a ‘Two-Way Bet’
While Hougan remains optimistic, he also warned that Solana’s volatility could remain extreme in the short term.
“If crypto markets experience another liquidity shock or risk-off event, Solana will likely fall faster than Bitcoin or Ethereum,” he cautioned. “But that’s the nature of explosive assets — they’re both the first to fall and the first to recover.”
Analysts at Bitwise currently forecast that Solana could reach between $250 and $300 in a bullish scenario, but could also correct to $150 if broader market weakness persists.
SOL Price Outlook
At the time of writing, SOL trades near $198, up 8% over the past week. Technical analysts note that a breakout above $210 could open the path toward $225–$240, while failure to hold $185 support may invite further downside.
Final Thoughts
Matt Hougan’s remarks reinforce Solana’s growing role in institutional portfolios. While volatility remains a concern, the combination of ETF speculation, strong fundamentals, and record on-chain activity could make Solana one of the most influential assets heading into Q4 2025.
“For long-term investors,” Hougan concluded, “Solana offers both the risk and the reward that define transformational assets.”
