Markets
Speculation grows around potential Spot Solana ETFs
As anticipation builds around the possible SEC approval of Ethereum (ETH) exchange-traded funds (ETFs), experts are turning their attention to the possibility of other cryptocurrencies such as Solana (SUN), gaining similar recognition.
Industry leaders are discussing whether Solana could be the next asset to see the introduction of spot ETFs, a move that could significantly impact the crypto market.
Industry Perspectives on Spot Solana ETFs
In a recent appearance on CNBC, Brian Kelly, CEO of digital currency investment firm BKCM, highlighted Solana’s potential, noting that Bitcoin, Ethereum and Solana are the top three cryptocurrencies of this cycle. Additionally, Kelly suggested that if the SEC approved spot Ethereum ETFs, it would provide clearer regulations for Ethereum and the broader market. This potentially leads to the approval of more crypto ETFs in sightincluding Solana.
See more information: Crypto ETN vs. Crypto Crypto ETF: What’s the difference?
ETF analyst James Seyffart of Bloomberg Intelligence offered insights in response to Kelly’s speculation. Seyffart emphasized the regulatory hurdles Solana faces, particularly given its current classification as a security by the SEC.
“Based on current precedents/needs – will happen within a few years of CFTC regulation futures Marketplace. But Congressional and Market framework bills like FIT21 could make this happen more quickly. I think a SOL ETF would have higher demand compared to other digital assets (besides BTC and ETH). But the SEC is not dancing around SOL’s status as if it has ETH. These lawsuits against Coinbase, Kraken, and others openly say that “Solana is a security.” Which could easily make this road very difficult,” Seyffart said. observed.
Despite the challenges, Seyffart recognized the demand for Solana ETFs. However, he suggested that Litecoin (LTC) could see ETF approval first, albeit with less market interest. Cryptojournalist Laura Shin added that although Litecoin may have “little regulatory baggage”, Solana makes sense from a usage and fundamentals perspective.
The crypto community eagerly awaits the official SEC ruling on spot Ethereum ETFs, which could set the stage for future approvals. ETF Analyst Eric Balchunas speculated that an announcement could come around 4pm today. His prediction was based on the timing of the SEC’s approval of spot Bitcoin ETFs in January.
See more information: Ethereum ETF explained: what it is and how it works
As the market watches closely, discussions surrounding Solana and other potential ETFs in sight continue to evolve, highlighting the complexities and opportunities within the crypto-regulatory environment.
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