Author: Mike Dalton, Cryptoslate; Translated by: Wuzhu, Golden Finance

Rob Marrocco, vice president and global head of ETF listings at Cboe, believes that crypto ETFs beyond Bitcoin and Ethereum are unlikely to emerge until the market and regulatory landscape changes.

Marrocco said in the June 11 episode of the ETF Store podcast that market expectations for Solana (SOL) and XRP spot ETFs are unrealistic in the short term because there are no futures markets for these cryptocurrencies, which was a major factor in approving spot Bitcoin and Ethereum ETFs.

He added that this means the only viable way to bring a Solana ETF to market is first through a Solana futures ETF, which would then pave the way for a spot ETF.

Marocco further stated that even if Solana futures ETFs are introduced, they will need to be traded for quite some time to establish a track record. However, this process could be prolonged and could take quite some time to achieve.

He highlighted the length of the process, saying it "may have taken a long time to get to this point".

Alternative Pathways

According to Marrocco, a more expedient approach would be to establish a comprehensive crypto regulatory framework that would define what is a security and what is a commodity, allowing the SEC to act accordingly.

However, this requires legislative action, which could take just as long, or even longer, depending on the speed and willingness of politicians.

Despite the challenges, especially during an election season, Marrocco said establishing a clear regulatory framework would be a faster path than waiting for futures markets to develop.

VettaFi editor-in-chief Lara Crigger largely agrees, saying:

“There is no futures market for Solana. The data the SEC is specifically looking for is small and insufficient to show that the market is large enough and transparent enough to support an ETF.”

Industry experts have mixed opinions on the Solana ETF, with JPMorgan and Bloomberg expressing skepticism, while Bernstein believes that the approval of an Ethereum ETF paves the way for tokens like Solana to gain commodity classification.

FIT21 Act

As cryptocurrency becomes an increasingly important issue for American voters in an election year, regulatory uncertainty in the United States is beginning to fade.

Congress recently passed a new piece of legislation called the Financial Innovation and Technology for the 21st Century Act (FIT21) on May 22. The bill aims to establish a comprehensive regulatory framework for digital assets to ensure investor protection and market integrity.

FIT21, which passed the House of Representatives with strong bipartisan support, clarifies regulatory responsibilities between the Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC).

Under the bill, the CFTC will gain jurisdiction over digital commodities, while the SEC will oversee digital assets offered as part of investment contracts. This division is critical to reducing regulatory overlap and providing clearer guidelines for market participants.

The bill has not yet become law and is currently awaiting a vote in the Senate.