Solana
Fast Money’s Brian Kelly Says Solana Is Next in Line for a US Cash ETF
Last updated: May 23, 2024 at 3:40 a.m. EDT | 2 minutes of reading
Crypto investor and trader Brian Kelly has suggested that Solana (SOL) could potentially become the next cryptocurrency to have a spot exchange-traded fund (ETF) in the United States.
On a recent episode of CNBC’s “Fast Money,” Kelly, who is also founder and CEO of the BKCM Digital Asset Fund, asked the question: “The market is now: Who’s next?”
He then suggested: “You have to think of Solana as probably next. Bitcoin, Ethereum and Solana are probably the big three in this cycle.
The speculation comes just a day before the Securities and Exchange Commission (SEC) is expected to rule on at least one proposed Ether (ETH) spot ETF.
Solana ETF May Not Come Next
However, not everyone shares Kelly’s optimism.
Nate Geraci, president of The ETF Store, expressed skepticism, stating that a Solana spot ETF may not materialize until a Solana futures product is listed on a major exchange or until Congress establishes a clear regulatory framework for cryptocurrencies beyond Bitcoin and Ethereum.
James Seyffart, an ETF analyst at Bloomberg, echoed Geraci’s sentiments, predicting that launching a Solana spot ETF could take years, subject to regulatory milestones such as approval from the Commodity Futures Trading Commission (CFTC). ).
But the SEC is not circling around the status of SOL as if it were ETH. These lawsuits against COIN, Kraken and others categorically say “Solana is a security” lol. Which could very easily make this road very bumpy.
–James Seyffart (@JSeyff) May 22, 2024
Despite the differing opinions, Seyffart highlighted the potential demand for a Solana spot ETF, suggesting it could outperform other digital assets outside of Bitcoin and Ethereum.
However, regulatory obstacles remain significant.
The SEC, under the leadership of Gary Gensler, previously classified Solana as collateral in lawsuits against Coinbase and Kraken, adding complexity to the path of potential ETF applicants.
Adam Cochran, partner at Cinneamhain Ventures, offered a contrasting perspective, suggesting that Litecoin (LTC) or Dogecoin (DOGE) could beat Solana in the ETF race due to perceived cleaner regulatory pathways, despite lower demand compared to Solana.
While few ETF issuers have openly discussed the possibility of filing a Solana spot ETF, Franklin Templeton, a billion-dollar asset management firm, recently praised Solana and its founder Anatoly Yakovenko.
This has fueled speculation about the company’s potential interest in launching a Solana ETF in the future.
Fidelity Files Amended S-1 Filing with SEC
As noted, Fidelity filed an amended S-1 request to the SEC for its spot Ether ETF yesterday.
The updated application clarifies that the ETF’s underlying Ether tokens will not be staked.
S-1 filings are mandatory registration forms required by the SEC for launching publicly traded securities products in the United States.
Speculation around the approval of spot Ether ETFs also gave a boost to spot Bitcoin ETFs, which saw an uptick in inflows on Tuesday.
BlackRock’s iShares Bitcoin Trust (IBIT) witnessed a significant influx of $290 million on May 21, marking a reversal of the trend of zero or minimal entries observed over the past six weeks.
The recent inflow of funds into the BlackRock ETF represents the highest level since April 5, eclipsing the cumulative inflows seen over the past 21 trading days.
On May 21, BTC hit a six-week high of $71,600, but then fell below the $70,000 level in early trading on May 22, currently trading at $69,444 at the time of writing .