Institutions Own Under 1% of Solana—Opening Opportunities for Expansion in 2025

Solana (SOL) has climbed 7% in recent trading, fueled by increasing optimism regarding the possible approval of a

ETF and a surge in institutional interest. This rally is supported by large companies and investment funds seeking to leverage Solana’s distinct strengths, such as its high-speed transactions, minimal fees, and competitive staking returns. Pantera Capital analysts highlight that institutional investors currently hold less than 1% of Solana’s supply, in contrast to 16% for and 7% for Pantera Capital [ 1 ]. They believe this underrepresentation creates a strong case for increased demand once regulatory challenges are addressed.

Anticipation for a Solana ETF potentially launching in late 2025 has further boosted market excitement. Pantera and other organizations are actively advocating for structured investment products that could offer institutional-level access to Solana. Helius Medical Technologies, listed on Nasdaq, recently secured $500 million in an oversubscribed private placement to allocate funds into Solana as a reserve asset, marking a notable change in corporate treasury approaches Helius Medical Technologies [ 2 ]. This follows similar moves by companies like Forward Industries (NASDAQ: FORD), which has purchased and staked more than 6.8 million

, establishing itself as a public treasury entity aligned with Solana’s network Forbes [ 3 ].

Solana’s technological strengths are also driving its popularity. According to The Motley Fool, Solana’s decentralized exchanges (DEXes) handled about $1.4 trillion in trading volume over the past year, surpassing Ethereum’s $699 billion, even though Solana’s market cap is only 23% of Ethereum’s The Motley Fool [ 4 ]. This performance, along with ultra-low transaction costs and near-instant finality, makes Solana a top choice for developers and users looking for scalable and affordable blockchain solutions. In comparison, Ethereum’s ecosystem is more fragmented, relying on Layer-2 solutions and incurring higher gas fees, which can hinder both developers and users Cryptoweekly [ 5 ].

Staking returns further set Solana apart as a treasury asset. The current annual yield for staking SOL is between 7% and 8%, notably higher than Ethereum’s 3–4% and Bitcoin’s 0% Blocknews [ 6 ]. This yield advantage enables institutional investors to compound their rewards, accelerating NAV growth and boosting long-term performance. For instance, DeFi Development Corp, a publicly traded company, holds 2.05 million SOL and is actively involved in validator selection and governance, aligning its investments with Solana’s infrastructure Forbes [ 3 ]. These strategies highlight Solana’s evolution from a speculative asset to a practical, institutionally viable holding.

Investors are also monitoring regulatory developments, with Pantera Capital’s $1.25 billion plan to create a Solana-focused public treasury reflecting strong confidence in the asset’s institutional prospects Forbes [ 3 ]. Although a Solana ETF has yet to be approved, the combination of growing treasury adoption, superior technical capabilities, and attractive yields positions Solana to potentially outperform Bitcoin and Ethereum in 2025. However, analysts warn that SOL’s higher volatility—around 80% compared to Bitcoin’s 40%—necessitates prudent risk management, though it also offers greater compounding potential for long-term investors Blocknews [ 6 ].