Ethereum
Bloomberg Analyst Plans to Spot Solana ETF After Ethereum Approval
The approval of an Ethereum spot ETF by the US securities regulator could pave the way for a similar fund for Solana, according to Bloomberg analyst James Seyffart.
Solana, the fifth largest cryptocurrency by market value, could see its own spot exchange-traded fund (ETFs) “within a few years” if the United States Securities and Exchange Commission (SECOND) approves the spot Ethereum ETFSeyffart said in a recent post on social media.
Based on precedent/current needs – This will happen within a few years of getting a CFTC regulated futures market. But Congressional and market structure bills like FIT21 could make this happen more quickly.
I think a SOL ETF would see the most demand compared to other digital assets (apart from BTC and ETH)
–James Seyffart (@JSeyff) May 22, 2024
In an X post on May 23, Seyffart did not rule out the possibility of a spot ETF for Solana (GROUND) launch in the near future, according to the Commodity Futures Trading Commission (CFTC) establishing a regulated futures market.
“Based on previous/current needs [the approval of spot Solana ETF] This will happen a few years after we get a CFTC-regulated futures market.
James Seyffart
The Bloomberg analyst also noted that legislative measures such as the Financial Innovation and Technology for the 21st Century (FIT21) Act could accelerate this process, noting that a Solana spot ETF would likely attract substantial demand, just behind Bitcoin (BTC) and Ethereum (ETH).
The FIT21 law goals establish a comprehensive regulatory framework for cryptocurrencies, bringing clarity to their trading. However, SEC Chairman Gary Gensler has already publicly opposed the bill, arguing that FIT21 would create “new regulatory gaps and undermine decades of precedent for investment contract oversight, thereby exposing investors and capital markets to immeasurable risks.”
The Biden administration also expressed his opposition to the bill, saying FIT21 “in its current form does not have sufficient protections for consumers and investors who engage in certain digital asset transactions.”
The discussion around a Solana spot ETF comes amid the market’s wait for the SEC to approve an Ethereum spot ETF. If approved, it would set an important precedent, likely paving the way for other altcoin-focused ETFs, including Solana.
The SEC’s decision on VanEck’s Ethereum ETF proposal is expected on May 23.