Altcoins
Solana ETFs will see more demand than other Altcoin funds: Bloomberg analyst
Bloomberg exchange-traded fund (ETF) analyst James Seyffart believes that a Solana ETF would see more demand than similar funds for other altcoins except ether (ETH).
Seyffart’s statement was in answer to the video in which CNBC Fast Money trader and crypto investor Brian Kelly said Solana ETFs were next in line after Ethereum ETFs were approved by the United States Securities and Exchange Commission (SEC).
Solana ETF to See High Demand
The chances of the SEC approving a short-term Ethereum spot ETF increased this week, with several market experts, including Bloomberg analysts, increasing the probability of such an event from 25% to 75%.
The crypto community is excited and awaiting the SEC’s decision on the VanEck spot Ethereum ETF proposal, which has a final decision. deadline from May 23. Same ETH caught the hype and made remarkable progress this week, rallying 28% in the last seven days.
While it remains to be seen when the SEC will approve pending Ethereum spot ETF proposals, analysts have sparked debate over the next cryptocurrency on the ETF issuance list.
Seyffart said a Solana ETF could launch within a few years of a futures market being regulated by the Commodity Futures Trading Commission (CFTC). However, Congress and standalone crypto market structure bills like the FIT21 could speed up the process.
“I think a SOL ETF would see the most demand compared to other digital assets (aside from BTC and ETH),” the Bloomberg analyst tweeted.
Conditions for Solana ETFs
Furthermore, Seyffart note that the path to launching Solana ETFs could be rocky as the SEC does not “dance 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 categorically classified SOL as a security, which could toughen the process of issuing the funds.
Seyffart’s comments sparked different reactions from community members, with some sharing his position.
Nate Geraci, president of The ETF Store, agreed with Seyffart: saying: “No sol ETFs until CME-traded sol futures exist or Congress establishes a legitimate crypto regulatory framework. The Crypto ETF faucet turned off for a while after the ETF’s spot eth approval… IMO.
Meanwhile, other members of the community think Litecoin and Dogecoin, despite their lower demand, are more likely to get ETFs before Solana because they have “cleaner paths” and no regulatory baggage.