Solana (SOL) could potentially be the next cryptocurrency to have a spot exchange-traded fund (ETF) in the United States, according to crypto investor and trader Brian Kelly. During a recent episode of CNBC’s ‘Fast Money’, Kelly, who is also the founder and CEO of the BKCM Digital Asset Fund, suggested that Solana should be considered as the next big player in the crypto market. He believes that Bitcoin, Ethereum, and Solana are the top three cryptocurrencies for this cycle. However, not everyone shares Kelly’s optimism. Nate Geraci, president of The ETF Store, expressed skepticism, stating that a spot Solana ETF might not happen until a Solana futures product is listed on a major exchange or until Congress establishes a clear regulatory framework for cryptocurrencies beyond Bitcoin and Ethereum. James Seyffart, an ETF analyst at Bloomberg, echoed Geraci’s sentiments, predicting that it could be years before a spot Solana ETF is launched, depending on regulatory milestones such as approval from the Commodity Futures Trading Commission (CFTC). Despite the differing opinions, Seyffart highlighted the potential demand for a spot Solana ETF, suggesting it could surpass other digital assets outside of Bitcoin and Ethereum. However, regulatory hurdles remain a challenge. The SEC has categorized Solana as a security in lawsuits against Coinbase and Kraken, which adds complexity to the path for potential ETF applicants. On the other hand, Adam Cochran, a partner at Cinneamhain Ventures, believes that either Litecoin (LTC) or Dogecoin (DOGE) might beat Solana to the ETF race due to perceived cleaner regulatory pathways, despite lower demand compared to Solana. While few ETF issuers have openly discussed the possibility of filing for a spot Solana ETF, trillion-dollar asset management firm Franklin Templeton recently praised Solana and its founder Anatoly Yakovenko, fueling speculation about the firm’s potential interest in launching a Solana ETF in the future. In other news, Fidelity has made an amended S-1 application to the SEC for its spot Ether ETF, specifying that the underlying Ether tokens of the ETF will not be staked. This move has also boosted spot Bitcoin ETFs, with BlackRock’s iShares Bitcoin Trust (IBIT) witnessing a substantial inflow of $290 million on May 21, marking a reversal in the trend of zero or minimal inflows observed over the past six weeks.
