A Closure That Sends a Signal
Bitwise shut down its Dogecoin ETF within a year of launch, a rare product withdrawal for a firm that has been aggressive about filing new crypto ETFs. For Horsley, the failure was not just a business setback; it was a data point about where institutional buyer demand actually sits. For related coverage, see Bitwise Files S-1 for NEAR ETF With US SEC.
Horsley framed the Dogecoin ETF’s poor uptake as evidence that buyers are discriminating. Dogecoin’s value proposition is largely cultural and speculative. Solana, by contrast, offers a dense ecosystem of onchain applications, from decentralized exchanges to token launchpads, that generate real economic activity on the network. That distinction, Horsley argued, is what moves capital.
The contrast has been stark across the broader altcoin ETF landscape. Dogecoin ETFs struggled for buyers while XRP and Solana funds pulled in $3 billion, a gap that underscores how differently the market values speculative meme exposure versus network-utility plays.
Onchain Use as the New Benchmark for ETF Demand
When Horsley points to Solana’s onchain use, he is describing something specific: the volume of transactions, applications, and value flowing through the Solana network every day. Unlike Dogecoin, which functions primarily as a store of speculative sentiment, Solana hosts DeFi protocols, NFT marketplaces, and a growing payments layer that generate measurable activity independent of price.
That activity gives ETF buyers something to underwrite. An ETF tracking an asset with active onchain economics offers a different investment thesis than one tracking a coin whose price moves are driven almost entirely by social media cycles. Horsley’s read is that institutional and retail buyers increasingly understand that difference.
Bitwise has been building toward this thesis for some time. The firm has filed for ETFs across multiple utility-heavy assets, including a Bitwise S-1 for a NEAR ETF with the US SEC and a Chainlink ETF prospectus as LINK surged over 20%. Both NEAR and Chainlink have active developer and user ecosystems, fitting the same utility-first pattern Horsley is articulating.
AI ETFs Widen the Thematic Bet
Alongside the Dogecoin closure, Bitwise announced it is adding AI-focused ETFs to its product lineup. The move broadens the firm’s thematic exposure beyond crypto-native assets and signals that Bitwise sees convergence between blockchain infrastructure and artificial intelligence as a durable investor interest, not a passing trend.
The AI ETF additions sit alongside, rather than replace, Bitwise’s crypto offerings. The firm has continued to expand its international crypto footprint, including partnering with Hargreaves Lansdown to bring Bitcoin ETPs to the UK. The combined product strategy positions Bitwise as a broad thematic ETF issuer rather than a crypto-only house.
Horsley’s comments leave an open question for the rest of the altcoin ETF market: if onchain utility is the real demand driver, how many other meme-adjacent filings will struggle to find buyers once they actually launch?
Additional source references: source document 1, source document 2.
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.
