As the U.S. Securities and Exchange Commission (SEC) proceeds to approve an Ethereum spot exchange-traded fund (ETF), industry leaders are speculating whether Solana will be the next candidate.
In fact, many experts believe Solana could become the next ETF as it gains more and more attention in the cryptocurrency market.
Is Solana Spot ETF Next?
SEC Chairman Gary Gensler announced that a spot Ethereum ETF is expected to launch this summer. Gensler emphasized that the final approval process is progressing positively and that final registration requirements are being managed at the practitioner level.
These developments have investors paying close attention to which cryptocurrency will succeed Ethereum.
“Maybe Solana will be next. Bitcoin, Ethereum, and Solana will be the top three cryptocurrencies of this cycle,” said CNBC presenter Brian Kelly.
Asymmetric CEO Joe McCann echoed this sentiment, believing that interest in Solana comes from people who missed out on Ethereum's early success.
“I think Solana will be next…” McCann said. “There is actually interest in Solana because of people who missed out on Ethereum trading in the last cycle.”
Meanwhile, investor Anthony Pompliano of Pomp Investments detailed the strategic move from Ethereum to Solana. He noted that despite these changes, there is still no active discussion about the Solana ETF among regulators.
“At the end of last year or early this year, I sold Ethereum and bought Solana instead. This decision was made with the belief that Solana would surpass Ethereum in the future. So far, I think that’s true, but I haven’t heard anything about the Solana ETF in the U.S.,” Pompliano said.
Read more: Solana vs Ethereum : The Ultimate Comparison
However, not everyone is convinced that the Solana ETF should be approved immediately. This cautious approach highlights the regulatory challenges Solana faces.
“There will be no Solana ETF until there are Solana futures traded on the CME or Congress creates a legitimate cryptocurrency regulatory framework… “After the approval of the spot Ethereum ETF, the flow of cryptocurrency ETFs was blocked for a while,” said Nate Geraci, president of ETF Store.
Bloomberg research analyst James Seipart provided additional insight into the potential timeline.
“[The Solana ETF] will launch within a few years of the creation of a CFTC-regulated futures market… We believe the Solana ETF will see the most demand compared to other digital assets. However, the SEC is not dancing over Solana’s status like it is with Ethereum. “The lawsuits against Coinbase, Kraken, and others state emphatically that ‘Solana is a security,’” Seipart points out.
Read more: 6 Best Platforms to Buy Solana (SOL) in 2024
The potential of ETFs remains a topic of debate as market analysts watch closely. Nonetheless, prediction market Polymarketssees a 7% chance of the Solana spot ETF being approved in 2024. A betting pool of just over $192,000 suggests the proposition is not yet attractive to speculators.
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