As the US Securities and Exchange Commission (SEC) moves forward with approving spot Ethereum exchange-traded funds (ETFs), industry leaders are now considering whether Solana could be the next candidate.
Many experts speculate that Solana may indeed be the next in line for an ETF approval, citing its increasing prominence within the cryptocurrency market.
Speculation and Challenges Surrounding Solana ETF Approval
SEC Chair Gary Gensler has announced the expected launch of spot Ethereum ETFs this summer, highlighting positive progress in the final approval process managed at the staff level.
Following Ethereum’s advancements, attention has turned to which cryptocurrency might follow suit. According to Brian Kelly of CNBC, Solana stands out as a potential candidate, alongside Bitcoin and Ethereum, given its significant role in the current market cycle.
Joe McCann, CEO of Asymmetric, shares a similar view, suggesting that interest in Solana stems from investors who missed out on Ethereum’s earlier successes.
Anthony Pompliano, from Pomp Investments, has strategically shifted from Ethereum to Solana, citing potential future outperformance. However, he notes that discussions about a Solana ETF in the US have not gained momentum yet.
Despite optimism, some industry experts advocate caution regarding immediate approval of a Solana ETF, highlighting existing regulatory challenges that Solana must navigate.
Debate Over Solana ETF Approval
Nate Geraci, President of the ETF Store, has indicated a cautious stance on the approval of a Solana ETF, stating, “No Solana ETF until either CME-traded Solana futures exist or Congress puts a legit crypto regulatory framework in place.” He suggests that the approval of a spot Ethereum ETF might delay approval for other crypto ETFs.
James Seyffart, a Research Analyst at Bloomberg, provided additional perspective, predicting that a Solana ETF could materialize within a few years of establishing a CFTC-regulated futures market. However, he highlighted regulatory challenges, noting that recent lawsuits against platforms like Coinbase and Kraken label Solana as a security.
Solana ETF Approval Odds. Source: Polymarket
Despite ongoing analysis, the potential for a Solana ETF remains uncertain. Polymarket, a prediction market, reports a mere 7% chance of a Solana spot ETF approval in 2024, reflecting cautious sentiment among speculators.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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