Michael Novogratz is betting the next leg of crypto adoption will not start with Bitcoin. In a CNBC appearance this week, the Galaxy Digital chief executive said Solana is set to draw billions in fresh investor capital as institutions expand beyond first-generation crypto exposure.
He framed it as the season of SOL, a nod to what he sees as a maturing ecosystem with the throughput, fees, and developer activity needed for financial applications. The remarks land after months of heavy trading in Solana assets and a pickup in product launches tied to the network.
Solana has positioned itself as a high-speed, low-cost blockchain that can support exchange-like volumes and tokenized assets that pitch aligns with a broader push in traditional markets to test on-chain rails for settlement and recordkeeping.
Nasdaq, for instance, recently filed a proposal with the Securities and Exchange Commission to permit trading in tokenized securities on its main market, a step that could pull more Wall Street plumbing toward blockchain over the next 12 to 24 months.
While Nasdaq’s plan is not specific to any one chain, the vision meshes with Novogratz’s claim that networks built for speed will be best placed to capture new flows.
Bitcoin exchange-traded funds opened the door for institutions to allocate at scale without touching wallets or private keys. A similar playbook is now emerging around other digital assets.
Issuers have brought new vehicles to market designed to give brokerage-account access to Solana exposure, including funds that seek to distribute staking rewards. Even with modest assets today, the architecture is in place for larger allocations if sentiment turns, liquidity deepens, and compliance teams get comfortable.
Novogratz did not offer a timeline for those billions, and there are obvious caveats. The SEC has yet to finalize rules for a wide class of crypto products, and any spot Solana ETF decisions remain subject to the agency’s calendar and comments.
Regulatory clarity, even when directionally positive, often arrives in stages. Market structure takes time to adapt. There are also chain-specific risks, from validator concentration to historical overhangs related to bankruptcy estates that still hold legacy SOL.
Still, the backdrop has shifted in ways that strengthen Novogratz’s argument. The tokenization narrative has moved from conference slides to concrete filings and pilot programs. Corporate treasuries and public companies are experimenting with on-chain assets, even if only at the margin.
Crypto-native firms have become more active market makers across Solana venues, narrowing spreads and improving depth. and the developer pipeline for Solana remains busy, with payments, gaming, and DeFi teams pushing into production. If volumes and venues continue to improve, larger tickets have more room to maneuver.
The investment case for SOL as a token that reflects network demand, staking economics, and risk premia. Solana as a piece of market infrastructure that could benefit from tokenized securities, stablecoin settlement, and high-frequency applications.
Novogratz’s billions comment speaks primarily to the latter. If more real-world assets and cash flows migrate on-chain, working capital and hedging activity tend to follow.
A stronger dollar or tighter financial conditions could sap risk appetite. Execution risk on network upgrades and outages can dent confidence. Competition is not standing still, with Ethereum scaling and other high-throughput chains building out their own ecosystems.
Even so, the setup that Novogratz describes is easy to recognize for anyone who watched the path of Bitcoin ETFs, start with infrastructure and access, then let demand find its level.
