- Solana (SOL) could be the next cryptocurrency to get a spot in an ETF in the US, according to CNBC’s Brian Kelly.
- Regulatory hurdles and the SEC’s classification of Solana as a security could delay its arrival.
The world of cryptocurrencies is abuzz with speculation about a potential Solana (SOL) exchange-traded fund (ETF) in the United States. This speculation comes after Brian Kelly, a CNBC contributor and crypto investor, suggested on “Fast Money” that Solana, being one of the “big three” coins alongside Bitcoin (BTC) and Ethereum (ETH), is a likely candidate for the next ETF.
However, Kelly’s prediction is met with a mix of optimism and skepticism. Industry experts like Nate Geraci, president of The ETF Store, believe a spot Solana ETF hinges on the establishment of a Chicago Mercantile Exchange (CME)-traded Solana futures product or a clear regulatory framework from Congress. Currently, only Bitcoin and Ethereum futures ETFs are approved in the US.
Further dampening the near-term prospects is the classification of Solana as a security by the Securities and Exchange Commission (SEC) in past lawsuits against Coinbase and Kraken. Bloomberg ETF analyst James Seyffart agrees with Geraci, suggesting a Solana ETF might take “a few years” after a regulated futures market is established.
Despite the regulatory hurdles, some believe Solana holds immense potential. Seyffart himself predicts a spot where Solana ETF would see significant demand, potentially exceeding all other digital assets except Bitcoin and Ethereum. Additionally, the recent praise for Solana by trillion-dollar asset manager Franklin Templeton fuels speculation about their potential involvement in a future ETF application.
Backing Solana’s potential is Matt Hougan, chief investment officer at Bitwise. He has called Solana the “crypto asset of 2024″ and highlighted its real-world use cases as attractive to institutions.
While a Solana ETF might not be around the corner, Kelly’s prediction has sparked a vital conversation about the future of cryptocurrency ETFs in the US. With regulatory developments and growing institutional interest, Solana’s place in a potential ETF future cannot be ignored.