CEO Predicts It Could Be Next Crypto ETF

The long-awaited approval of a spot exchange-traded fund (ETF) for Ethereum within the US appears imminent, and trade insiders are already trying forward. Solana, a high-speed blockchain community, is rising as a possible frontrunner for the subsequent cryptocurrency ETF.

Brian Kelly, founder and CEO of BKCM LLC, believes Solana is a powerful contender for an ETF because of its rising recognition and potential to be a part of a “large three” alongside Bitcoin and Ethereum within the present crypto market cycle.

This sentiment aligns with the current surge in anticipation surrounding Ethereum ETFs. The Securities and Trade Fee’s (SEC) current shift in stance, evident within the last-minute approval of Bitcoin futures ETFs in January, has fueled optimism for Ethereum and probably different cryptocurrencies.

Investor Curiosity: A Blended Bag

Nevertheless, not everybody within the trade agreed with Kelly’s forecast.

In response to Nate Geraci, president of The ETF Retailer, a spot Solana ETF gained’t be out there till Congress establishes a authorized framework governing cryptocurrencies or till a Solana futures product traded on the Chicago Mercantile Trade is listed.

As of proper now, the US has solely licensed futures for Bitcoin (BTC) and Ether (ETH).

For his half, analyst Robert Mitchnick of Blackrock, a number one funding administration agency, throws a bucket of chilly water on the altcoin ETF occasion.

Mitchnick’s conversations with purchasers, based mostly on a report, reveal “little curiosity” in altcoins like Ethereum, not to mention lesser-known gamers. This means that even when the SEC greenlights an ETF, widespread investor adoption is likely to be gradual.

SOL market cap nearing the $80 billion degree. Chart:

Curiously, Europe seems to be forward of the curve on the subject of Solana. A number of exchange-traded merchandise (ETPs) exist already there, highlighting a possible hole within the US market {that a} Solana ETF might fill.

Authorized Standing: A Potential Roadblock

Whereas trade figures like Kelly are optimistic, a big hurdle stands in the best way of a Solana ETF: its authorized classification. The SEC’s lawsuits towards cryptocurrency exchanges Coinbase and Binance in 2023 named Solana as a safety, not a commodity.

This distinction is essential as a result of ETFs historically cope with commodities, not securities. The Solana Basis vehemently disputes the SEC’s declare, emphasizing the decentralized nature of its blockchain community. Nevertheless, the authorized ambiguity might result in a prolonged approval course of and even rejection by the SEC.

Solana: The Highway Forward

The success of an Ethereum ETF, if accepted, will probably be a bellwether for future cryptocurrency ETFs, together with SOL. Moreover, the SEC’s stance on Solana’s authorized standing wants clarification earlier than any concrete progress could be made.

Featured picture from OKX, chart from TradingView