Renowned CNBC contributor Brian Kelly recently suggested that the popular altcoin Solana (SOL) could be the next cryptocurrency to receive approval for a spot exchange-traded fund (ETF) in the US. Kelly expects such an approval to happen eventually.
“Solana is Next”
Kelly, who is also the founder and CEO of BKCM LLC, identified Solana alongside Bitcoin (BTC) and Ethereum (ETH) as key players in the current cryptocurrency cycle. According to him, after the largest cryptocurrency and the largest altcoin, Solana will be the next cryptocurrency to have a spot ETF in the US.
Kelly’s comments came at a time when optimism for the approval of spot Ethereum ETFs increased, following the successful launch of spot Bitcoin ETFs earlier this year.
For a while, the US Securities and Exchange Commission (SEC) has been signaling the potential approval of spot Ethereum ETFs, which has led to a significant price increase in the cryptocurrency market. Although Kelly does not have a specific timeline for the SEC to approve a spot Ethereum ETF, he is confident that it will eventually happen, reflecting market expectations.
Obstacles Ahead for Spot Solana ETF
Despite the optimism for future potential ETFs for Ethereum and Solana, interest in altcoins remains relatively low. Robert Mitchnick, head of digital assets at the world’s largest asset management company BlackRock, noted that their clients show limited interest in Ethereum and even less in other altcoins. In line with this, BlackRock confirmed in January that it had no plans to launch a spot ETF for XRP.
In Europe, Solana already has multiple exchange-traded products (ETPs) listed on various exchanges, indicating some institutional interest. However, the regulatory environment in the US is more challenging, preventing the launch of such an ETF.
Last year, the SEC’s lawsuits against the Coinbase and Binance exchanges included allegations that Solana was a security. The Solana Foundation strongly opposed this, arguing that the Blockchain network is decentralized. Experts highlight that the SEC’s approach complicates the legal and regulatory environment for spot Solana ETFs in the US.
Solana’s legal status has the potential to significantly impact ETF approval expectations. The SEC‘s classification of Solana as a security poses a major obstacle, and the absence of a futures-based ETF for the altcoin in the US further complicates the situation. These factors contribute to the uncertainty surrounding Solana’s potential approval for a spot ETF.
