Could Solana Be the Next Big Thing? Speculation Grows Around a Spot ETF
Recently, CNBC’s ‘Fast Money’ trader Brian Kelley noted Solana’s strong potential as a possible spot ETF contender, causing many to speculate if this could be the next big thing in crypto.
- Solana was grouped together with Bitcoin and Ethereum as part of the “Big Three” by BKMC’s Brian Kelly on CNBC’s Fast Money.
- If the spot Ethereum ETF is approved, analysts say this could pave the way for non-Bitcoin blockchain assets turned into ETFs.
The crypto market is buzzing with anticipation, and this time, all eyes are turning to Solana.
Following the groundbreaking approvals of the Bitcoin spot exchange-traded funds (ETFs) and the next potential for an Ethereum ETF, the question on everyone’s mind is palpable: Could Solana be next?
It’s actually not a far-fetched idea to consider this notion. With its rapid growth, innovative technology, and increasing adoption, Solana (SOL) is poised to be a strong contender. But what does this mean for the ETF market in particular?
The buzz
Crypto investor and CNBC ‘Fast Money’ trader Brian Kelly ignited discussion on X by suggesting that Solana might be the next cryptocurrency to receive a spot ETF approval in the United States.
Kelly made this prediction during CNBC’s post-market talk show Fast Money on May 22, just one day before the SEC is set to decide on a proposed spot Ether (ETH) ETF.
“The trade now is, who’s next,” asked Kelly.
“You’ve got to think about Solana as probably the next one. Bitcoin, Ethereum and Solana are probably the big three for this cycle.”
It’s important to point out that, unlike BTC and ETH, SOL doesn’t have a futures ETF yet and has already been ruled as a security by the SEC.
So, why Solana?
In an X post, Daniel Yan, co-founder of Matrixport, highlighted that Solana might be the next cryptocurrency to get an ETF due to market trends following Bitcoin and Ethereum ETF approvals.
He suggested that an Ethereum ETF approval could shift investor focus to Solana, boosting its price. Yan recommended investing in Solana over Ethereum, citing less competition and greater potential for gains.
Moreover, analysts Gautam Chhugani and Mahika Sapra suggest that approving a spot Ethereum ETF in the U.S. could potentially set a precedent for other non-Bitcoin blockchain assets, such as Solana, to follow suit.
They imply that if an Ethereum ETF is approved, it could raise hopes for Solana’s classification as a commodity and eventual ETF approval.
Back in January, fellow BTC ETF issuer and trillion-dollar asset manager Franklin Templeton had already set the stage for the idea to generate some curiosity, praising the Solana network for its cumulative developments and growth in an X post.
The praise for Solana led many in the crypto community on X to hope that Franklin Templeton might consider issuing a Solana ETF in the future.
Not everyone agrees, however
Nate Geraci, president of The ETF Store, believes a spot Solana ETF won’t be available until either a Solana futures product is listed on the Chicago Mercantile Exchange or Congress establishes a clear regulatory framework for cryptocurrencies.
In fact, NFT analyst James Seyffart mirrors this sentiment, highlighting Solana’s role as a security in the lawsuits against COIN and Kraken.
However, he’s supportive of the notion in regards to how much demand for this type of product would attract.
“I think a SOL ETF would see most demand vs other digital assets (aside from BTC & ETH).”
The SEC’s upcoming deadline to rule on a spot Ether ETF is today.
