Solana Emerges as a Potential Candidate for the Next Spot ETF: Can It Really Happen?
- Solana emerges as a potential candidate for the next spot ETF after Bitcoin and Ethereum.
- Brazil approves Solana ETFs, but SEC rejects initial US attempts.
- Futures ETF and regulatory changes could pave the way for Solanas spot ETF approval.
In the wake of Bitcoin and Ethereum spot ETF approvals in the United States, the cryptocurrency community has turned its attention to Solana as the potential next contender in the ETF race.
As the fifth-largest cryptocurrency by market capitalization, Solanas unique position in the crypto ecosystem has sparked discussions about its viability as an ETF underlying asset.
The year 2024 has witnessed a seismic shift in the crypto-ETF landscape, with the SECs groundbreaking approval of Bitcoin spot ETFs in January, followed by Ethereum ETFs several months later.
These developments have not only reshaped the industry but also opened the door for speculation about which digital asset might secure regulatory approval next.
Solanas candidacy for ETF approval stems from its commodity-like characteristics, distinguishing it from stablecoins like Tether or centrally controlled tokens like BNB. This classification aligns more closely with the SECs preference for ETFs based on assets that are not susceptible to manipulation by a single entity.
Brazil approves two Solana ETFs
Brazils recent approval of two Solana ETFs has provided an interesting test case for the assets potential in more stringent regulatory environments. However, the lackluster performance of Ethereum ETFs, which saw major outflows despite favorable market conditions, raises questions about the demand for altcoin ETFs in general.
The SECs swift rejection of CBOEs initial Solana ETF filings highlights the uphill battle facing potential issuers. Bloomberg analyst Eric Balchunas expressed skepticism about Solanas chances under current SEC leadership, noting that the regulator dismissed the proposal before the formal review process could begin.
Despite these setbacks, proponents like Matthew Sigel of VanEck argue for Solanas eligibility based on legal precedents that could classify it as a commodity. This argument draws on a 2018 court case that established criteria for determining whether certain digital assets qualify as commodities.
Looking ahead, industry experts suggest two potential pathways for Solanas ETF aspirations: the approval of a futures-based ETF, which faces less regulatory scrutiny, or comprehensive crypto regulation reform from Congress.
Text source: TheNewsCrypto – Blockchain & Cryptocurrency News M
