Solana ETFs to See More Demand Than Other Altcoin Funds: Bloomberg Analyst
Bloomberg exchange-traded fund (ETF) analyst James Seyffart believes a Solana ETF would see more demand than similar funds for other altcoins, except ether (ETH).
Seyffart’s statement was in response to a video in which CNBC Fast Money trader and crypto investor Brian Kelly said Solana ETFs were next in line following the approval of Ethereum ETFs by the United States Securities and Exchange Commission (SEC).
Solana ETF to See Heavy Demand
The chances of the SEC approving a spot Ethereum ETF in the near term went up this week, with several market experts, including Bloomberg analysts, increasing the odds of such an occurrence from 25% to 75%.
The crypto community is hyped and anticipating the SEC’s decision on the VanEck spot Ethereum ETF proposal, which has a final deadline of May 23. Even ETH caught the hype and has made remarkable strides this week, rallying 28% in the last seven days.
While it remains to be seen when the SEC will approve the pending spot Ethereum ETF proposals, analysts have sparked a debate about which cryptocurrency is next on the list of ETF issuances.
Seyffart said a Solana ETF could be launched within a few years of getting a futures market regulated by the Commodity Futures Trading Commission (CFTC). However, Congress and standalone crypto market structure bills like the FIT21 could hasten the process.
“I think a SOL ETF would see most demand vs other digital assets (aside from BTC & ETH),” the Bloomberg analyst tweeted.
Conditions for Solana ETFs
Furthermore, Seyffart noted that the road to launching Solana ETFs could be rocky because the SEC is not “dancing around” the status of the network’s native token, SOL, as it did with ETH. Several lawsuits against prominent exchanges like Coinbase, Binance, and Kraken have flat-out classified SOL as a security, which could harden the process of issuing the funds.
Seyffart’s comments sparked different reactions from community members, with some concurring with his stance.
Nate Geraci, president of The ETF Store, agreed with Seyffart, saying: “No sol ETF until either CME-traded sol futures exist or Congress puts legit crypto regulatory framework in place. Crypto ETF spigot turned off for a while after spot eth ETF approval… IMO.”
Meanwhile, other community members think Litecoin and Dogecoin, despite their lower demand, have higher chances of getting ETFs before Solana because they have “cleaner paths” and no regulatory baggage.
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