Solana
Next in line after Ethereum approval?
Crypto investors are on the edge of their seats as the SEC prepares to deliver its verdict on a long-awaited decision. Ethereum ETF. Could a green light trigger a domino effect, paving the way for a wave of altcoin ETFs? And if so, which altcoins are most likely to benefit?
Dive in to find out what analysts are saying about the potential impact on Solana (SOL) and other digital currencies.
Here’s what to expectt
The prospect of a Ethereum ETF approved analysts hope for a ripple effect in the cryptocurrency market. There is a prevailing belief that if the SEC greenlights an Ethereum ETF, it could open the door to similar altcoin-focused products.
Brian Kelly, CEO of BKCM, recently speculated in an interview with CNBC, Solana could be the next cryptocurrency to receive an ETF. Rumors out of Hong Kong also suggest that an issuer is preparing for a SOL ETF.
This isn’t going to be easy!
Unlike Ethereum, Solana does not currently have a futures ETF and has been labeled a security by the SEC, making its ETF prospects more complex. Additionally, a major ETF issuer has been reluctant to expand beyond Bitcoin and Ethereum.
Altcoins vs Bitcoin: the analyst gives his opinion
Bloomberg analyst James Seyffart offered hope, suggesting that the CFTC’s approval of a futures ETF could pave the way for a Solana SPOT ETF, especially with the potential influence of the proposed Crypto law FIT21. However, Seyffart also noted lukewarm demand for ETFs for other altcoins like Litecoin (LTC) and Dogecoin (DOGE).
Adam Cochran, partner at Cinneamhain Ventures, weighed in, proposing that Litecoin (LTC) or Dogecoin (DOGE) might have a better chance for the next spot ETF, given their alignment with regulatory expectations due to their mechanisms proof of work consensus.
Altcoin ETF Debate
While some advocate expanding the ETF landscape to include various altcoins, Hunter Horsley, CEO of Bitwise Investment, argues against separate ETFs, pointing to the broad exposure offered by Bitwise’s 10 Crypto Index Fund.
Opposition of Bitcoin Maximalists
However, not everyone is excited about the expansion of the ETF market.
Bitcoin maximalists, like “The Bitcoin Therapist,” have voiced their concerns on CNBC, warning against diluting the market with what they call “lesser-known” cryptocurrencies, or “shitcoins,” fearing that it will does not undermine the perceived value and legitimacy of Bitcoin.
Despite fervent speculation, the path to ETF approval for Ethereum and Solana remains uncertain, mired in regulatory complexities. Approval would mean recognition of their legal status, which could further complicate matters in the US market.
It’s worth noting that Solana does not currently have a U.S. futures ETF, which adds another layer of complexity to its ETF journey.
Will the SEC open the floodgates to altcoin ETFs? Only time will tell.
Also discover: Solana vs. Litecoin and Dogecoin: the next crypto ETF debate