Calls for Spot Solana ETF Grow After Ethereum Developments, Bitcoin Maxis Oppose

Amid the strong and growing optimism surrounding the approval of the spot Ethereum ETF, the ball has started rolling demanding similar products for other altcoins like Solana. Market analysts have been stating that the approval of the spot Ethereum ETF can lead to a snowball effect.

Chorus for Spot Solana ETF Grows

In a recent appearance on CNBC, BKCM CEO Brian Kelly suggested that Solana (SOL) could potentially become the next cryptocurrency exchange-traded fund (ETF). This speculation aligns with prior rumors in Hong Kong hinting at the issuer’s preparation for a SOL ETF.

However, SOL faces unique challenges, as it currently lacks a futures ETF and has been classified as a security by the U.S. Securities and Exchange Commission (SEC), adding further complexity to its ETF prospects. Notably, a prominent ETF issuer has expressed disinterest in launching ETFs beyond Bitcoin (BTC) and Ethereum (ETH) at this time.

According to analysis from Bloomberg’s James Seyffart, the approval of a futures ETF by the Commodity Futures Trading Commission (CFTC) could pave the way for the potential approval of a Solana (SOL) SPOT ETF in the coming years, with the FIT21 Crypto Bill potentially expediting this process.

However, hurdles remain as the U.S. Securities and Exchange Commission (SEC) has explicitly classified Solana as a security, posing significant challenges for its ETF journey. Seyffart also noted a lack of demand for Litecoin (LTC) and Dogecoin (DOGE) ETFs.

Bitwise Investment CEO Hunter Horsley stated that there’s no need to have separate ETFs for other altcoins. He said that Bitwise’s 10 Crypto Index Fund already provides investors exposure to Bitcoin, Ethereum, Solana, and the top seven other altcoins.

Bitcoin Maxis Oppose This Development

Bitcoin maximalist “The Bitcoin Therapist,” raised concerns regarding the potential introduction of a Solana ETF, as reported by CNBC.

He argues that the inclusion of Ethereum (ETH) in the spot ETF sphere has triggered a domino effect, unleashing a flood of lesser-known cryptocurrencies, disparagingly referred to as “shitcoins.”

The Bitcoin Therapist remains resolute in his commitment to Bitcoin.

✓ Share:

Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.

The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.