Solana (SOL) Tipped as Next Cryptocurrency to Secure Spot in US ETFs
Summary:
CNBC's 'Fast Money' trader, Brian Kelly, suggested that Solana (SOL) could be the next cryptocurrency to secure a spot in exchange-traded funds (ETF) in the US, sparking debate among industry observers. Some agreed, citing potential high demand, while others, including Nate Geraci, President of The ETF Store, expressed skepticism unless proper regulatory measures are in place. Speculation has been raised about Franklin Templeton considering a Solana spot ETF application after the firm commended Solana and its founder, Anatoly Yakovenko.
Brian Kelly, a crypto investor and trader on CNBC's 'Fast Money' ignited a discussion on Crypto X when he theorized that Solana (SOL), the cryptocurrency, could be the next one to secure a spot in exchange-traded funds (ETF) within the United States. Kelly presented his hypothesis during a post-market conversation on CNBC's Fast Money on May 22, the day before the U.S. Securities and Exchange Commission is set to rule on a proposed Ether (ETH) spot ETF.
The real question is, who's next in line?" addressed Kelly, who also happens to be the founder and CEO of BKCM Digital Asset Fund. He continued, "We need to consider Solana as a potential candidate. Bitcoin, Ethereum, and Solana are, in my opinion, the frontrunners for this cycle." However, not everyone agreed with Kelly's forecast.
Nate Geraci, the president of The ETF Store, expressed his skepticism. He suggested a Solana ETF won't become a reality until either the Chicago Mercantile Exchange lists a Solana futures product or Congress imposes a proper regulatory framework for cryptocurrencies. Until now, only Bitcoin (BTC) and Ether (ETH) futures have been given the green light in the U.S.
James Seyffart, the ETF analyst from Bloomberg, concurred with Geraci's assessment, pointing towards such a progression happening "within a few years" following the establishment of a Commodity Futures Trading Commission-regulated market. Nonetheless, Seyffart anticipates a Solana ETF will attract more interest than any other digital asset, excluding Bitcoin and Ether.
On the other hand, Seyffart drew attention to the fact that Solana has been flagged as a security by Gary Gensler and the SEC in past Coinbase and Kraken lawsuits, potentially causing future entanglements for prospective applicants.
Adam Cochran, a partner at Cinneamhain Ventures, offered a dissenting opinion stating either Litecoin (LTC) or Dogecoin (DOGE) could be next to feature in a spot ETF instead, due to their "cleaner paths" despite "much lower demand". Furthermore, few ETF issuers have mentioned the possibility of filing for a Solana spot ETF.
However, speculation has recently been raised due to the commendation of Solana and one of its founders, Anatoly Yakovenko, by the trillion-dollar asset management firm, Franklin Templeton. Speculation is rife about whether the firm would contemplate submitting a Solana spot ETF application in the future.
Lastly, Matt Hougan, Bitwise's chief investment officer, has anticipated Solana to be the "crypto asset of 2024" and examined real-world uses on the network that institutions might leverage in the future.
Published At
5/23/2024 7:35:40 AM
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