Bitwise CEO Stung by Ethereum Backlash Over Solana ETF

In the lead-up to Bitwise’s surprise listing of its Solana Staking ETF on the New York Stock Exchange, CEO Hunter Horsley ignited controversy by telling Cointelegraph that Solana’s shorter validator exit queue gave it a distinct advantage over Ethereum in the staking ETF race. This technical comparison struck a nerve within the crypto community, particularly among Ethereum loyalists who viewed the comments as a betrayal of the values that originally inspired Bitwise’s creation in 2016. The timing of these remarks, coming just before the NYSE listing, amplified their impact and highlighted the competitive dynamics shaping institutional crypto products.

Bitwise Chief Investment Officer Matt Hougan escalated the situation further during a podcast appearance, where he praised Solana’s speed, throughput, and transaction finality as ‘extraordinarily attractive’ and went so far as to label the blockchain ‘the new Wall Street.’ These glowing endorsements represented a significant departure from the firm’s historical alignment with Ethereum’s cypherpunk ethos and created a clear dividing line between the two blockchain ecosystems at a moment when institutional adoption is accelerating.

The response from Ethereum supporters was swift and critical, with some community members accusing Bitwise of abandoning the principles that made Ethereum foundational to the crypto space. Hunter Horsley was visibly affected by the criticism, responding that he felt ‘terrible’ to see the negative posts and emphasizing that ‘we care a lot about Ethereum.’ The emotional weight of the backlash was compounded by Ethereum’s role in inspiring Bitwise’s founding, creating a sense of ideological conflict that transcended typical business competition.

Horsley specifically acknowledged that feedback had been received regarding Bitwise’s recent commentary ‘seeming to be at odds with values in the ETH community’ and confirmed this criticism was ‘being taken to heart.’ This response demonstrated the ongoing influence of community sentiment in the crypto space, even as firms like Bitwise navigate the complex landscape of institutional product development and regulatory compliance surrounding ETFs.

The controversy highlights the growing tensions between different blockchain communities as crypto moves further into mainstream finance. Bitwise’s Solana Staking ETF listing on the NYSE represents a significant milestone for institutional crypto adoption, but the path forward requires balancing technical advantages with community expectations. The firm’s emphasis on Solana’s shorter validator exit queue as a competitive edge over Ethereum reflects the practical considerations driving institutional product design, even when those decisions create friction with established communities.

Matt Hougan’s characterization of Solana as ‘the new Wall Street’ and his praise for its technical capabilities underscore how institutional players are evaluating blockchains based on performance metrics rather than purely ideological alignment. This pragmatic approach, while potentially controversial, reflects the evolving nature of crypto investment as it transitions from niche communities to mainstream financial markets. The incident demonstrates how crypto firms must navigate both technical specifications and community relationships as they develop products for increasingly sophisticated institutional investors.

The Bitwise situation serves as a case study in the challenges facing crypto firms as they expand beyond single-chain allegiances. While Horsley’s personal connection to Ethereum made the criticism particularly painful, the episode illustrates the broader industry trend toward multi-chain strategies that prioritize technical capabilities alongside community values. As staking ETFs and other institutional products continue to emerge, the balance between performance optimization and ideological consistency will remain a central tension in the evolving crypto landscape.