In a recent appearance on CNBC's "Fast Money" program, cryptocurrency investor and trader Brian Kelly stirred discussion within the Crypto X community by suggesting that Solana (SOL) could be the next cryptocurrency to receive approval for a spot exchange-traded fund (ETF) in the United States. Kelly, also the founder and CEO of BKCM Digital Asset Fund, made this prediction on May 22, a day prior to the U.S. Securities and Exchange Commission's decision on proposed ethereum (ETH) ETFs. He emphasized Solana's prominence alongside Bitcoin and Ethereum, dubbing them the "big three" of the current crypto cycle.
While Kelly's forecast sparked speculation, some industry observers, like Nate Geraci, president of The ETF Store, cast doubts on the feasibility of a spot Solana ETF in the near term. Geraci believes such an ETF would only materialize once a Solana futures product traded on the Chicago Mercantile Exchange becomes available or if Congress enacts a regulatory framework for cryptocurrencies.
James Seyffart, an ETF analyst at Bloomberg, echoed Geraci's sentiments, suggesting that access to a Commodity Futures Trading Commission (CFTC)-regulated market could pave the way for a spot Solana ETF within a few years. Seyffart acknowledged potential high demand for such an ETF, ranking just behind Bitcoin and Ethereum, but highlighted regulatory complexities, particularly the SEC's past classification of Solana as a security in legal disputes involving Coinbase and Kraken.
Contrary to Kelly's stance, Adam Cochran, a partner at Cinneamhain Ventures, opined that Litecoin (LTC) or Dogecoin (DOGE) might be the next tokens to secure spots in ETFs. Cochran cited cleaner regulatory pathways for these tokens, despite lower demand compared to Solana. Both Litecoin and Dogecoin operate on proof-of-work consensus mechanisms akin to Bitcoin.
While few ETF issuers have hinted at pursuing a spot Solana ETF, notable endorsements of Solana's technology, such as Franklin Templeton's positive remarks on Anatoly Yakovenko, one of Solana's founders, raise speculation about potential filings for a Solana ETF in the future. Matt Hougan, chief investment officer at Bitwise, has also expressed optimism about Solana's prospects, predicting it to be the "crypto asset of 2024" and exploring its real-world applications for institutional adoption.
