Altcoin
Solana ETFs Will See More Demand Than Other Altcoin Funds: Bloomberg Analyst
Bloomberg Exchange Traded Fund (ETF) analyst James Seyffart believes a Solana ETF would see greater demand than similar funds for other altcoins, with the exception of Ether (ETH).
There was Seyffart’s statement answer to the video in which Brian Kelly, CNBC Fast Money trader and cryptocurrency investor She said Solana ETFs were next in line following the approval of Ethereum ETFs by the US Securities and Exchange Commission (SEC).
The Solana ETF will see strong demand
The chances of the SEC approving an Ethereum spot ETF in the near term increased this week, with several market experts, including Bloomberg analysts, saying growing the probability of such an event occurring from 25% to 75%.
Crypto Community Is Excited and Anticipates SEC Decision on VanEck’s Spot Ethereum ETF Proposal, Which Has a Final Decision expiration of May 23. Also ETH taken the hype and made great strides this week, rally 28% in the last seven days.
While it remains to be seen when the SEC will approve pending Ethereum spot ETF proposals, analysts have sparked a debate over which cryptocurrency is next on the ETF issuance list.
Seyffart said a Solana ETF could be launched within a few years of the introduction of a futures market regulated by the Commodity Futures Trading Commission (CFTC). However, Congress and the autonomous cryptocurrency market structure bill as the FIT21 it could speed up the process.
“I think a SOL ETF would see the most demand compared to other digital assets (aside from BTC and ETH),” the Bloomberg analyst tweeted.
Conditions for Solana ETFs
Also, Seyffart noticed that the road to the launch of Solana’s ETFs may be difficult because the SEC is not “dancing around” the status of the network’s native token, SOL, as it did with ETH. Several lawsuits against major exchanges such as Coinbase, Binance and Kraken have classified SOL as a security, which could tighten the process of issuing funds.
Seyffart’s comments have sparked varying reactions from community members, some of whom agree with his position.
Nate Geraci, president of The ETF Store, agrees with Seyffart, said: “No ETF sol until CME-traded sol futures exist or Congress puts in place a legitimate cryptocurrency regulatory framework. The crypto ETF spigot was turned off for a while after the spot eth ETF was approved… IMO.”
Meanwhile, other members of the community think Litecoin and Dogecoin, despite their lower demand, have a better chance of getting ETFs before Solana because they have “cleaner paths” and no regulatory baggage.