Solana ETFs Are Not Going To Happen: CF Benchmarks CEO

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As a seasoned researcher with years of experience in the cryptocurrency market, I have seen my fair share of bull markets and bear markets, hypes and crashes, and everything in between. The recent developments surrounding Solana ETFs have caught my attention, and after careful analysis of the situation, I must say that I am not holding my breath for a quick approval.

Sui Chung, the CEO of CF Benchmarks has described Solana ETFs as a non-starter downplaying widespread optimism of a launch. Chung pointed to previous requirements cited by the Securities and Exchange Commission (SEC) before giving the green light to other products. The price of SOL is down as the chances of a spot ETF for the asset hangs in a balance. 

Solana ETFs Are Far From Approvals

As a researcher in the field of cryptocurrencies, I’m observing a growing excitement about potential Solana Exchange Traded Funds (ETFs). These funds, which industry experts believe could soon receive regulatory approval, might be the next crypto ETF to launch. Given that Solana is the fifth-largest digital asset, its supporters are optimistic that this approval would attract more investment into the market. However, it’s worth noting that Sui Chung has expressed doubts about the imminent creation of Solana-based ETFs due to some unmet pre-existing requirements.

It seems unlikely that Solana ETFs will be developed using the same methodology as Bitcoin and Ethereum ETFs.

Chung emphasized the absence of a properly regulated market for Solana futures, suggesting that such regulation is crucial as stated by the SEC for the approval of crypto ETFs in the country. Yet, supporters of Solana remain hopeful about the potential acceptance of these products, opening up a fresh investment opportunity for traditional investors.

In 2017 and 2021, Bitcoin and Ether futures were listed on the CME. The smooth trading of these futures contracts has paved the way for potential future approval of similar products. As these futures have been traded without any significant market disruptions, there’s a strong argument to support the listing of spot Exchange-Traded Funds (ETFs) as well.

SOL Price Slides

Currently, Solana’s price stands at $130.20, representing a 1.4% drop over the past day. Despite its reputation for outperforming the broader market, recent statistics suggest some challenges as adverse macroeconomic factors emerge. Compared to Bitcoin and Ethereum, Solana has shown superior performance this year. The introduction of a spot ETF could further boost its performance in anticipation of upcoming bullish trends.

In the first quarter of 2024, Bitcoin ETF inflows have persistently increased as they reached new highs, sparking optimism among Solana holders. They are hopeful that a similar trend could occur if these funds are eventually approved. Simultaneously, Solana enthusiasts are working towards a market recovery following Tron’s “Vampire Attack,” which temporarily affected Solana’s price.

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2024-09-03 21:08