In a recent CNBC interview, BKCM CEO Brian Kelly stirred speculation by suggesting that Solana (SOL) could potentially become the next cryptocurrency to receive a spot exchange-traded fund (ETF) in the United States. Colin Wu, a Chinese reporter, has shared an X post, reflecting on Kelly’s thoughts.
Kelly’s remarks came amidst anticipation surrounding the Securities and Exchange Commission’s (SEC) impending decision on proposed spot Ether (ETH) ETFs. With Bitcoin (BTC) and Ethereum (ETH) already having secured futures ETF approval in the U.S., attention has turned to other prominent cryptocurrencies, including Solana.
Despite the optimism, some industry observers are skeptical. Nate Geraci, president of The ETF Store, emphasized that a spot Solana ETF is unlikely until a Solana futures product is listed on the Chicago Mercantile Exchange.
This view aligns with Bloomberg ETF analyst James Seyffart, who believes such a development might only occur after a Commodity Futures Trading Commission-regulated market is established. Seyffart also noted that a spot Solana ETF would attract significant demand, second only to Bitcoin and Ether.
The Securities and Exchange Commission (SEC) has previously labeled Solana as a security in lawsuits involving Coinbase and Kraken. This classification complicates the approval process for any potential ETF. Moreover, major ETF issuers have expressed reluctance to launch ETFs for cryptocurrencies other than Bitcoin and Ether at this time.
Contrary to Kelly’s prediction, Adam Cochran, a partner at Cinneamhain Ventures, believes that Litecoin or Dogecoin might be the next cryptocurrencies to feature in a spot ETF. Cochran argues that these cryptocurrencies, which operate on a proof-of-work consensus mechanism like Bitcoin, have a clearer regulatory path and lower demand hurdles.
Bitwise’s chief investment officer, Matt Hougan, has predicted that Solana could be the crypto asset of 2024, highlighting its real-world use cases that institutions could leverage. Solana’s current market performance reflects its growing influence.
At press time, Solana’s price stands at $177.38 with a 24-hour trading volume of $3.6 billion. Although it has seen a slight decrease of 0.28% in the last 24 hours, the interest in Solana’s potential remains high.
