The approval of a spot Ethereum ETF by U.S. securities regulators could pave the way for a similar fund for Solana, according to Bloomberg analyst James Seyffart.
Solana, currently the fifth-largest cryptocurrency by market value, could see its own spot exchange-traded fund (ETF) “within a few years” if the U.S. Securities and Exchange Commission (SEC) approves spot Ethereum ETFs, Seyffart mentioned in a recent social media post.
In a post on X (formerly Twitter) on May 23, Seyffart suggested that a spot ETF for Solana (SOL) might launch soon, depending on the Commodity Futures Trading Commission (CFTC) establishing a regulated futures market.
“Based on current precedent and needs, [the approval of a spot Solana ETF] will happen within a few years of getting a CFTC regulated futures market,” Seyffart stated.
The Bloomberg analyst also highlighted that legislative measures like the Financial Innovation and Technology for the 21st Century Act (FIT21) could speed up this process. He emphasized that a spot Solana ETF would likely attract significant demand, second only to Bitcoin (BTC) and Ethereum (ETH).
The FIT21 Act aims to create a comprehensive regulatory framework for cryptocurrencies, providing clarity for their trading. However, SEC Chair Gary Gensler has publicly opposed the bill, arguing that FIT21 would create “new regulatory gaps and undermine decades of precedent regarding the oversight of investment contracts, putting investors and capital markets at immeasurable risk.”
The Biden administration has also expressed opposition to the bill, stating that FIT21 “in its current form lacks sufficient protections for consumers and investors who engage in certain digital asset transactions.”
The discussion about a Solana spot ETF comes as the market eagerly awaits the SEC’s decision on the spot Ethereum ETF proposal from VanEck, expected on May 23. If approved, it would set a significant precedent, potentially paving the way for other altcoin-focused ETFs, including Solana.
Summary Review: Bloomberg analyst James Seyffart believes that the approval of a spot Ethereum ETF by U.S. regulators could lead to the launch of a similar fund for Solana in the near future. This possibility hinges on the establishment of a regulated futures market by the CFTC and the influence of legislative measures like the FIT21 Act. Despite opposition from SEC Chair Gary Gensler and the Biden administration, a spot Solana ETF could attract significant interest, following in the footsteps of Bitcoin and Ethereum. The upcoming SEC decision on the spot Ethereum ETF will be closely watched, as it could set a precedent for other cryptocurrency ETFs, including Solana.
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