Solana’s ETF Future Hinges on SEC’s Ether Decision

• Brian Kelly suggests Solana may feature in a U.S. ETF.
• Solana ETF depends on regulatory approval or CME futures introduction.
• Ethereum’s recent rally challenges predictions of Solana outperforming ETH.

Brian Kelly, a cryptocurrency investor, proposed that Solana might be the subsequent digital currency to obtain a spot in a U.S. exchange-traded fund (ETF), pending the Securities and Exchange Commission’s (SEC) expected ruling on a spot Ether ETF.

Brian Kelly, the CEO of BKCM Digital Asset Fund, considers Solana to be among the top three cryptocurrencies, sharing the spotlight with Bitcoin and Ethereum . Nonetheless, this view is not universally shared by all market analysts.

Launching a Solana-based exchange-traded fund (ETF) for spot trading is contingent upon either introducing a Solana futures product on the Chicago Mercantile Exchange (CME) or creating a definitive regulatory framework by the legislative body. Currently, only futures for Bitcoin and Ethereum have received the green light.

Despite potential regulatory approval, industry specialists anticipate that a Solana ETF would attract considerable interest and possibly outperform all other cryptocurrencies, with the exception of Bitcoin and Ethereum. However, the U.S. Securities and Exchange Commission’s (SEC) previous classification of Solana as a security in certain legal cases could present obstacles.

Adam Cochran from Cinneamhain Ventures suggests that Litecoin or Dogecoin could be the next to have an ETF due to their proof-of-work protocols, which are more aligned with Bitcoin’s, offering a more straightforward regulatory path.

Although not many ETF providers have mentioned a Solana ETF, Franklin Templeton’s recent commendation of Solana has led to speculation about its potential. Furthermore, Bitwise’s Chief Investment Officer, Matt Hougan, has labeled Solana as the “crypto asset of 2024,” citing its appeal to institutional investors.

Market analysts who had previously forecasted that Solana (SOL) would outperform Ethereum (ETH) in the next market upswing are reassessing their predictions as ETH experiences a notable rally. On a recent Monday, Ethereum’s price soared by over 19%, adding $70 billion to its market capitalization. This increase has brought Ethereum’s total market value to $439 billion, closing in on Solana’s market cap.