Amid regulatory expectations, market analysts are eagerly awaiting the SEC’s decision to approve or disapprove an Ethereum ETF. Analysts have high hopes for a possible approval, which is making huge waves in the financial community. There is speculation that altcoins like Solana (SOL) may be added if the Ethereum ETF is approved.
“Solana is next”
Kelly, who is also the founder and CEO of BKCM LLC, believes that Solana is a key player in the current cryptocurrency cycle, along with Bitcoin (BTC) and Ethereum (ETH). According to him, Solana will be the next cryptocurrency to have a spot ETF in the United States, following the largest cryptocurrency and the largest altcoin.
Kelly’s comments come as optimism grows over the approval of a spot Ethereum ETF following the successful launch of a spot Bitcoin ETF earlier this year.
For some time, the U.S. Securities and Exchange Commission (SEC) has been hinting at the possibility of approving a spot Ethereum ETF, which has led to a sharp rise in the price of the cryptocurrency market. Although Kelly did not give a specific timeline for the SEC to approve a spot Ethereum ETF, he believes that it will eventually happen, reflecting market expectations.
Obstacles Facing a Spot Solana ETF
Despite optimism about potential future ETFs for Ethereum and Solana, interest in altcoins remains relatively low. Robert Michnik, head of digital assets at BlackRock, the world's largest asset manager, noted that their clients have shown limited interest in Ethereum and even less interest in other altcoins. In line with this, BlackRock confirmed in January that it had no plans to launch an XRP spot ETF.
In Europe, Solana already has multiple exchange-traded products (ETPs) listed on various exchanges, indicating some institutional interest. However, the more challenging regulatory environment in the United States has hindered the launch of such ETFs.
Last year, the SEC’s lawsuit against Coinbase and Binance included allegations that Solana was a security. The Solana Foundation strongly opposed this, arguing that the blockchain network is decentralized. Experts stressed that the SEC’s approach complicates the legal and regulatory environment for a spot Solana ETF in the United States.
Solana’s legal status could have a significant impact on ETF approval expectations. The SEC’s classification of Solana as a security poses a significant hurdle, and the absence of a futures ETF for the altcoin in the U.S. further complicates the situation. These factors add to the uncertainty over whether Solana could possibly receive spot ETF approval.
(Personal opinion, not a recommendation)
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