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Bloomberg Analyst Predicts Solana Spot ETF After Ethereum Approval
According to Bloomberg analyst James Seyffart, the US securities regulator’s approval of an Ethereum spot ETF could pave the way for a similar fund for Solana.
Solana, the fifth largest cryptocurrency by market value, could see its own exchange-traded fund (ETFs) “within a few years” if the US Securities and Exchange Commission (SEC) approves the commercial Ethereum ETFSeyffart indicated in a recent social media post.
Based on precedent/current needs: This will happen within a few years of having 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 (aside from BTC and ETH)
—James Seyffart (@JSeyff) May 22, 2024
In an X message on May 23, Seyffart did not rule out the possibility of a spot ETF for Solana (SOL) which will be launched in the near future, depending on the Commodity Futures Trading Commission (CFTC) establishing a regulated futures market.
“Based on precedent/current needs [the approval of spot Solana ETF] This will happen within a few years of having a CFTC-regulated futures market.”
James Seyffart
The Bloomberg analyst also indicated that legislative measures such as the Financial Innovation and Technology for the 21st Century Act (FIT21) could accelerate this process, noting that a Solana spot ETF would likely attract substantial demand, second only to Bitcoin (Bitcoin) and Ethereum (ET).
The FIT law21 goals establish a comprehensive regulatory framework for cryptocurrencies, providing clarity for their exchange. However, SEC Chairman Gary Gensler has already done so publicly against the bill, arguing that FIT21 would create “new regulatory gaps and undermine decades of precedent regarding the oversight of investment contracts, exposing investors and capital markets to immeasurable risk.”
The Biden administration he also signaled his opposition to the bill, stating that FIT21 “in its current form does not have sufficient protections for consumers and investors engaging in certain digital asset transactions.”
Discussion of a Solana spot ETF comes amid the market’s anticipation for SEC approval of an Ethereum spot ETF. If approved, this would set a significant precedent, likely paving the way for other altcoin-focused ETFs, including Solana.
The SEC’s decision on VanEck’s Ethereum spot ETF proposal is expected on May 23.