Crypto investor and CNBC ‘Fast Money’ trader Brian Kelly has ignited a discussion in the crypto community by suggesting that Solana (SOL) could be the next cryptocurrency to have a spot exchange-traded fund (ETF) in the United States. Kelly made this prediction during the CNBC talk show ‘Fast Money’ on May 22, just a day before the Securities and Exchange Commission (SEC) was scheduled to decide on at least one proposed spot Ether (ETH) ETF.
Kelly, who is also the founder and CEO of the BKCM Digital Asset Fund, raised the question of who will be the next cryptocurrency to have an ETF. However, some industry observers have expressed their disagreement with Kelly’s prediction. Nate Geraci, the president of The ETF Store, believes that a spot Solana ETF will not be available until a Chicago Mercantile Exchange-traded Solana futures product is listed or until Congress establishes a legitimate regulatory framework for cryptocurrencies. Currently, only Bitcoin (BTC) and Ether (ETH) futures have been approved in the United States.
Bloomberg ETF analyst James Seyffart shares Geraci’s perspective, stating that a spot Solana ETF would likely be available “within a few years” of having a Commodity Futures Trading Commission-regulated market. Seyffart believes that a spot Solana ETF would generate more demand than any other digital asset apart from Bitcoin and Ether. However, Seyffart also mentioned that Gary Gensler and the SEC have previously identified Solana as a security in lawsuits involving Coinbase and Kraken, which could complicate matters for potential future applicants.
Adam Cochran, a partner at Cinneamhain Ventures, has a different view and believes that either Litecoin (LTC) or Dogecoin (DOGE) will be the next coins to be included in a spot ETF instead. Cochran stated that although the demand may be lower for these coins, the regulatory paths for them are clearer. Both Litecoin and Dogecoin use a proof-of-work consensus mechanism, similar to Bitcoin.
While few ETF issuers have expressed interest in filing for a spot Solana ETF, Franklin Templeton, a trillion-dollar asset management firm, recently praised Solana and one of its founders, Anatoly Yakovenko, leading to speculation about whether the firm would consider filing a spot Solana ETF application in the future. Matt Hougan, the chief investment officer of Bitwise, also predicted that Solana would be the “crypto asset of 2024” and explored real-world use cases on the network that institutions could leverage.
In related news, the CEO of Trezor, a cryptocurrency hardware wallet, warned that Bitcoin ETFs could make Coinbase a target for hackers and governments due to the increased attention and potential vulnerabilities associated with these funds.