According to Bloomberg analyst James Seyffart, the approval of a spot Ethereum ETF by the U.S. securities regulator could open the door for a similar fund for Solana in the future.
Solana, the fifth-largest cryptocurrency by market value, may potentially have its own spot exchange-traded fund (ETF) within a few years if the U.S. Securities and Exchange Commission (SEC) gives the green light to spot Ethereum ETFs, Seyffart suggested in a recent social media update.
In a post on May 23, Seyffart mentioned that the possibility of a spot ETF for Solana (SOL) could become a reality soon, pending the establishment of a regulated futures market by the Commodity Futures Trading Commission (CFTC).
The Bloomberg analyst also highlighted that regulatory initiatives like the Financial Innovation and Technology for the 21st Century Act (FIT21) could expedite this process, noting that a spot Solana ETF would likely attract significant demand, following Bitcoin (BTC) and Ethereum (ETH).
The FIT21 Act aims to create a comprehensive regulatory framework for cryptocurrencies to provide clarity for their trading. However, SEC Chair Gary Gensler has publicly voiced opposition to the bill, expressing concerns that FIT21 could introduce new regulatory gaps and jeopardize decades of oversight regarding investment contracts, posing risks to investors and capital markets.
The Biden administration has also indicated its disapproval of the bill, citing insufficient protections for consumers and investors participating in certain digital asset transactions in its current form.
The speculation about a Solana spot ETF arises amidst expectations for the SEC’s approval of a spot Ethereum ETF. If the proposal from VanEck is given the green light, it could establish a significant precedent, potentially paving the way for other altcoin-focused ETFs, including Solana.
The SEC’s decision on the spot Ethereum ETF proposal is anticipated on May 23.
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