Cathie Wood's ARK Invest Makes First Direct Solana Investment

In a move that signifies further crypto adoption by institutional investors, Cathie Wood’s ARK Invest has made its first direct purchase of Solana’s native token (SOL). 

According to a tweet from Solana Floor, the investment firm made the purchase through SOLQ ETF, a Canada-based staking fund.

This investment marks the first inclusion of SOL holdings in ARK’s U.S.-based ETFs, such as ARKF and ARKW. It also serves as further proof of growing institutional interest in the blockchain.

Cathie Wood’s move is a landmark event for Solana

Launched in Canada earlier this year, the SOLQ ETF allows investors to earn SOL staking yields without needing to trade or manage their holdings—an attractive benefit for many. ARK’s entry into Solana through SOLQ represents a significant pivot toward proof-of-stake assets, after previously focusing on Bitcoin and Ethereum.

This investment by Cathie Wood’s firm could prompt more U.S.-based funds to follow suit, especially as the U.S. SEC shows signs of easing its restrictive oversight on crypto ETFs.

With the U.S. SEC still yet to approve a U.S. Spot Solana ETF, many fund managers are likely to view Canada’s SOLQ as a viable alternative. Thanks to a 40% annual rise in developer activity, fast transaction speeds, and significantly lower fees than Ethereum, Solana has firmly established itself as one of the top-performing blockchains.

Cathie Wood’s ARK investment coincides with a period of upward price movement for SOL. According to current data from CoinGecko, the token has gained 29.5% in the last 14 days.

Immediate market reactions

Following the announcement, SOL’s price has yet to show any major shift, rising only a few cents in the last hour at the time of writing. In a January 2024 interview with CNBC, Cathie Wood compared Solana to Ethereum, calling it a faster and more efficient network.

Earlier, U.Today reported that ARK Invest dropped its plans to launch an Ethereum ETF despite previously expressing strong confidence in Ether’s long-term value. 

This new Solana investment signals Cathie Wood’s belief in SOL’s long-term worth beyond speculative trading, making it a strategic addition to her firm’s innovation-focused portfolio.