Solana ETF: Could it be the Next One Approved after Ethereum?
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The cryptocurrency market is abuzz with anticipation as the SEC prepares to announce its decision on the long-awaited Ethereum ETF. If approved, this could potentially pave the way for a series of altcoin ETFs. Analysts are speculating on which altcoins are most likely to benefit, with Solana being a top contender. However, Solana faces challenges due to the absence of a futures ETF and its security classification. On the other hand, Litecoin and Dogecoin might have better odds for an ETF approval.
Analysts are hopeful that if the SEC gives the green light to an Ethereum ETF, it could have a domino effect on the cryptocurrency market. There is a belief that this approval could open doors for similar products focusing on altcoins. BKCM CEO Brian Kelly recently speculated in a CNBC interview that Solana could be the next cryptocurrency to receive an ETF. Rumors from Hong Kong also suggest that an issuer is preparing for a Solana ETF.
However, unlike Ethereum, Solana currently faces challenges in obtaining an ETF approval. It lacks a futures ETF and has been classified as a security by the SEC, making its prospects more complex. Additionally, a major ETF issuer has shown reluctance to expand beyond Bitcoin and Ethereum.
Bloomberg analyst James Seyffart offered hope for a Solana SPOT ETF, suggesting that CFTC approval of a futures ETF could pave the way. He also mentioned the potential influence of the FIT21 Crypto Bill. However, Seyffart noted lukewarm demand for ETFs catering to other altcoins like Litecoin and Dogecoin.
Adam Cochran, a partner at Cinneamhain Ventures, proposed that Litecoin or Dogecoin might have better odds for the next spot ETF. He emphasized their alignment with regulatory expectations due to their proof-of-work consensus mechanisms.
There is a debate surrounding the inclusion of altcoin ETFs. While some advocate for expanding the ETF landscape to include various altcoins, Bitwise Investment CEO Hunter Horsley argues against separate ETFs. He highlights the broad exposure provided by Bitwise’s 10 Crypto Index Fund.
Bitcoin maximalists, however, oppose the idea of altcoin ETFs. They express concerns about diluting the market and undermining Bitcoin’s perceived value and legitimacy. They view altcoins as “lesser-known” cryptocurrencies or “shitcoins.”
Despite the speculation, the path to ETF approval for Ethereum and Solana remains uncertain due to regulatory complexities. Approval would signal acknowledgment of their legal status, potentially further complicating matters in the US market. It’s important to note that Solana currently lacks a futures-based ETF in the US, adding another layer of complexity to its ETF journey.
Only time will tell if the SEC will open the floodgates for altcoin ETFs.