The race for the third cryptocurrency exchange-traded fund (ETF) in the US is heating up, with Solana (SOL) emerging as the frontrunner. This comes as anticipation builds for a potential Ethereum (ETH) spot ETF approval by the SEC.
Solana’s Strong Position Bodes Well for ETF
Industry leaders are bullish on Solana’s prospects for an ETF. In a recent CNBC interview, Brian Kelly, founder of digital currency investment firm BKCM, expressed confidence in a Solana ETF following an Ethereum approval. He highlighted Solana’s established position as a major competitor to Ethereum, further bolstering its candidacy. Notably, Kelly included Solana alongside Bitcoin and Ethereum as the “big three” for this crypto investment cycle.
Regulatory Hurdles and Potential Timeline
James Seyffart, an ETF analyst at Bloomberg Intelligence, acknowledges regulatory hurdles for a Solana ETF, including the need for a CFTC-regulated futures market. He predicts a 2026 launch at the earliest, but recent pro-crypto legislation could expedite the process.
Looking beyond hurdles, Seyffart predicts that a Solana ETF would attract significant investor interest, potentially exceeding other altcoin ETFs. This further strengthens Solana’s case for being the next in line for ETF approval.
Also Read: XRP vs. Solana (SOL) : Who Will Win the Race for the Next Spot ETF? (LTC & DOGE Wait in the Wings)
XRP Faces a More Complex Path
While XRP appears to have a clearer regulatory stance compared to Solana, Seyffart believes it faces a longer road. The ongoing legal battle between Ripple Labs and the SEC remains a major obstacle. Additionally, the lack of a CFTC-regulated futures market for XRP presents another hurdle. Even overcoming these challenges, a potential shift in SEC leadership could significantly impact the approval process, as the current commission classifies XRP as a security.
The cryptocurrency market is constantly evolving, and regulations are still being developed. While Solana’s path to an ETF isn’t without challenges, experts believe it has a strong chance of being the next cryptocurrency to secure this coveted approval.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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