Bitwise CEO Hunter Horsley said the decision to close the firm’s Dogecoin ETF is a signal about where investor demand has shifted, pointing to Solana’s onchain use cases as the more compelling draw for buyers, while Bitwise simultaneously expands its product lineup with AI-focused exchange-traded funds.
Bitwise CEO Hunter Horsley said the decision to close the firm’s Dogecoin ETF is a signal about where investor demand has shifted, pointing to Solana’s onchain use cases as the more compelling draw for buyers, while Bitwise simultaneously expands its product lineup with AI-focused exchange-traded funds.
Bitwise Closes Its Dogecoin ETF
Bitwise is shutting down its Dogecoin ETF, with Horsley framing the closure not as a failure but as evidence of how institutional and retail buyers are allocating interest. According to Horsley, buyers who might have once sought Dogecoin exposure through a wrapper product are increasingly drawn to assets with active onchain ecosystems rather than pure speculative value. For related coverage, see Nasdaq Seeks Approval to List 21Shares Dogecoin ETF.
The Dogecoin ETF landscape has seen competitive pressure from multiple directions. Nasdaq has separately sought regulatory approval to list a 21Shares Dogecoin ETF, illustrating that Bitwise’s exit does not reflect a collapse in market interest broadly, but rather a specific judgment call about where Bitwise’s product development resources are best directed. For related coverage, see Bitwise Registers NEAR ETF in Delaware for SEC Approval.
Solana’s Onchain Use as the Alternative Thesis
Horsley’s stated reasoning centers on the distinction between holding a token for price exposure versus accessing a network where activity compounds. Solana, which hosts a high volume of decentralized finance activity, token issuance, and application usage, represents that second category. Buyers, in Horsley’s framing, are opting for the latter. For related coverage, see Solana's 50,000 SOL Security Contest Omitted a Disclosed Clock Attack.
Bitwise has already positioned itself around that thesis in practice. The firm has pursued a Solana staking ETF structure that incorporates tokenization, a product architecture that captures onchain yield rather than just spot price movement. That stands in contrast to a Dogecoin ETF, which offers price exposure to a network with minimal programmable activity. Solana’s onchain TVL and protocol depth provide the substantive backdrop for that demand argument.
This framing also fits a pattern Bitwise has applied to other layer-one networks. The firm has registered products across multiple blockchain ecosystems, including filing a NEAR ETF with the SEC via a Delaware registration, suggesting a deliberate focus on networks with active developer and user bases over meme-driven assets.
AI ETFs Extend Bitwise’s Product Strategy Beyond Crypto
Alongside the Dogecoin ETF closure, Bitwise is adding AI-focused ETFs to its product roster. Horsley has presented both moves, the crypto product rationalization and the AI expansion, as part of the same strategic logic: allocating product capacity toward areas where buyer demand is demonstrably active.
The AI ETF additions reflect a broader convergence between digital asset managers and technology sector thematic investing. For Bitwise, which built its profile primarily as a crypto asset manager, the move into AI products represents a notable expansion of mandate. Horsley has previously described institutional demand shifts in terms of sovereign wealth funds rotating out of traditional stores of value, a framing consistent with positioning AI alongside crypto as complementary thematic exposures.
From a Bitcoin-first perspective, the Bitwise product pivot underscores a structural point: capital seeking productive network exposure, whether onchain yield on Solana or AI infrastructure growth, is applying a utility test that pure speculative assets like Dogecoin do not pass. Bitcoin itself occupies a distinct category, valued for monetary properties and network security rather than application throughput, and Solana’s market positioning as a high-activity execution layer sits in a separate demand segment from Bitcoin’s fixed-supply monetary thesis.
Disclaimer: This article is for informational purposes only and does not constitute financial or investment advice. Cryptocurrency and digital asset markets carry significant risk. Always do your own research before making decisions.
