Calls for Spot Solana ETF Grow After Ethereum Developments, Bitcoin Maxis Oppose

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As a seasoned crypto investor with a deep understanding of the market, I’m keeping a close eye on the potential approval of a spot Ethereum ETF and its potential impact on other altcoins, particularly Solana (SOL). The growing chorus for a SOL ETF is an exciting development, but it also comes with unique challenges.

With increasing optimism and anticipation regarding the approval of an Ethereum-based Spot Exchange Traded Fund (ETF), there’s growing interest in creating similar products for other cryptocurrencies, such as Solana. Market analysts believe that the Ethereum ETF’s approval could trigger a chain reaction.

Chorus for Spot Solana ETF Grows

In his interview on CNBC, Brian Kelly, CEO of BKCM, proposed the possibility that Solana (SOL) could be the next cryptocurrency to receive an exchange-traded fund (ETF). This idea aligns with earlier whispers from Hong Kong indicating preparations for a SOL ETF by the issuer.

CNBC Guest believes $Sol will have the Next Spot ETF

— Joshua Jake (@itzjoshuajake) May 22, 2024

Despite the fact that Solana (SOL) presents distinct hurdles, it currently lacks a futures exchange-traded fund (ETF) and has been labeled as a security by the U.S. Securities and Exchange Commission (SEC). This classification brings added intricacy to SOL’s ETF possibilities. It is also worth noting that a leading ETF provider has indicated no intention of introducing ETFs based on assets other than Bitcoin (BTC) and Ethereum (ETH) at the moment.

Based on Bloomberg’s James Seyffart’s assessment, the CFTC’s approval of a futures Exchange-Traded Fund (ETF) could be a significant step toward the eventual approval of a Solana (SOL) SPOT ETF in the future. The FIT21 Crypto Bill could potentially speed up this process.

Despite these setbacks, the path forward for Solana’s exchange-traded fund (ETF) remains complicated due to the SEC’s classification of Solana as a security. Additionally, Seyffart pointed out that there seems to be insufficient interest in launching Litecoin and Dogecoin ETFs at present.

The Securities and Exchange Commission (SEC) doesn’t mince words when it comes to Ethereum’s status, unlike Solana’s. The lawsuits filed against Coinbase and Kraken explicitly label Solana as a security. This designation could potentially lead to a bumpy journey ahead.

— James Seyffart (@JSeyff) May 22, 2024

Hunters Horsley, CEO of Bitwise Investments, expressed that it’s unnecessary for investors to manage distinct ETFs for various altcoins. He emphasized that Bitwise’s 10 Crypto Index Fund offers exposure to Bitcoin, Ethereum, Solana, and the seven leading altcoins in a single investment vehicle.

Bitcoin Maxis Oppose This Development

Bitcoin advocate “The Bitcoin Therapist” voiced apprehensions over the prospect of a Solana Exchange-Traded Fund (ETF) being introduced, according to CNBC’s report.

As a researcher studying the impact of Ethereum (ETH) on the cryptocurrency market, I believe that its entry into the spot Exchange-Traded Fund (ETF) arena has set off a chain reaction. Consequently, numerous lesser-known digital currencies, pejoratively labeled as “shitcoins,” have gained significant attention and investment.

The Bitcoin Therapist remains resolute in his commitment to Bitcoin.

CNBC is already talking about a Solana ETF.
As an analyst, I’d express it this way: Including Ethereum (ETH) in the spot Exchange-Traded Fund (ETF) market comes with a challenge: it could lead to an influx of other less established cryptocurrencies, potentially creating complexity and increased risk for investors.
Looks like we’re about to have the free market casino everyone’s begged for.
I’ll stick to #Bitcoin
— The ₿itcoin Therapist (@TheBTCTherapist) May 22, 2024

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2024-05-23 07:48