Cathie Wood's Ark Invest has gained its first exposure to Solana by purchasing nearly 500,000 shares of the 3iQ Solana Staking ETF (SOLQ) through two of its funds, ARK Next Generation Internet ETF (ARKW) and ARK Fintech Innovation ETF (ARKF). This move highlights Solana's growing importance in the crypto market and marks Ark Invest as the first U.S.-based ETF to invest in Solana. The 3iQ SOL ETF was recently approved by Canadian regulators and launched on April 16, aligning with mainstream adoption of crypto ETFs. Beyond Ark Invest, other traditional financial firms like Charles Schwab are planning to enter the crypto space, signaling broader acceptance. Regulatory improvements under the current U.S. administration have facilitated this trend, with spot Bitcoin and Ethereum ETFs already approved in 2024. Despite some skepticism and challenges like custody, the SEC is expected to approve more crypto ETFs, including those for Solana and other altcoins, by the end of the year.

HIGHLIGHTS Solana is now a major component of two Ark Invest funds The Cathie Wood asset management firm is one of the first to gain exposure to Solana More traditional financial firms are betting big on nascent cryptocurrencies Ark Invest, the asset management firm owned by Cathie Wood, has gained its first exposure to Solana as the broader financial market expands its adoption of cryptocurrencies. The firm has added exposure to two tech investment vehicles via the 3iQ Solana Staking ETF (SOLQ). Market analysts believe this move validates SOL, a front-runner for spot altcoin ETF in the US.
The Ark Invest Solana Exposure
According to the Citywire report, the ARK Next Generation Internet ETF (ARKW) and ARK Fintech Innovation ETF (ARKF) have SOLQ in their respective portfolios. These Cathie Wood’s funds bought 237,500 shares of SOLQ apiece, validating the Solana fundamentals.

Canadian regulators approved the 3iQ SOL ETF for trading earlier this month, alongside other crypto funds from Purpose, Evolve, and CI. These ETF products went live on schedule on April 16, placing them in line for mainstream exposure.

As Ark Invest revealed in its press release, the Solana architecture and its design for speed and efficiency make it ideal for the next generation of the internet. With the bet, the Cathie Wood firm has made history as the first U.S.-based ETF to gain exposure to Solana.
Beyond Ark Invest and Solana: Portfolio Diversification Goes Mainstream
Asset management firms are shifting toward crypto products, a move beyond ARK and SOL. As CoinGape reported earlier, Charles Schwab has revealed plans to launch crypto trading later this year. The firm, with $10 trillion in assets under management, may add more credence to the nascent asset class if it pulls through with its plans.

Under President Donald Trump, the improving crypto regulation landscape has given asset managers like Ark Invest the long-sought leverage to bet on the market. The precedent was set earlier with spot Bitcoin and Ethereum ETF approval in 2024.

With key agencies like the Securities and Exchange Commission (SEC), Commodity Futures and Trading Commission (CFTC), and Federal Deposit Insurance Commission (FDIC) now aligned to crypto, more firms may soon join the diversification move.
Crypto ETFs and Role In TradFi Embrace
Despite the generally positive regulatory environment, many traditional financial firms are still skeptical of direct exposure to crypto. While many, like Ark Invest, do not mind the volatility, custody remains a major challenge.

More relatable products like Spot XRP ETF have been lodged with the SEC to mitigate this. With asset managers going all out in their bid, Solana, Hedera, Litecoin, and Dogecoin, among other assets, are also awaiting potential approvals from the SEC.

While the market regulator was skeptical of these kinds of products in the past, it now takes a different stance. Market experts expect approval before the end of this year.

Cathie Wood's Ark Invest invests in Solana for the first time through 3iQ ETF, promoting the mainstream adoption of cryptocurrency.