Solana ETF Next? Ethereum Developments Stretch SOL ETF Odds

• A final decision on VanEck’s Ethereum Spot ETF is due by today.
• Bloomberg’s top analyst explains the key hurdles behind SOL ETF.
• BTC Maxis step into the ring to blast SEC’s leniency towards altcoins.

The cryptosphere is anticipating a historic decision on Ether Spot ETF in the United States, as the Securities and Exchange Commission (SEC) prepares to announce its decision on May 23, 2024. As the anticipation grows, the self-proclaimed “Ethereum Killer” Solana (SOL) spurred to $180 on the hopes that SOL will be next on Gary Gensler’s list.

As Ethereum’s Spot ETF decision looms, Ether’s recent bullish breakout to nearly $4,000 after a two-month hiatus planted rows of optimism among crypto investors. Meanwhile, Bloomberg’s top financial analyst Brian Kelly has appeared on CNBC to ask the natural question: “Who’s next?”

Analyst Names Big Three of This Cycle

As the ball gets rolling, other TOP 5 contenders by global market capitalization are looking to establish their own products and services in the world of traditional finance. According to CNBC’s guest Brian Kelly, SOL has the highest chance of being the next in line to launch its own ETF products.

The financial analyst bases his argument on the SEC’s improvement in the legal framework. Naturally, the comment from Bloomberg’s analyst sparked enthusiasm from Solana’s community, but couldn’t evade harsh comments from BTC maxis.

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As of press time, Solana (SOL) trades at $171.49, facing a 4.3% pullback over the latest 24-hour period. In comparison to ETH, Solana is still 34% away from the all-time peak of $259.96 in November 2021. Ether’s distance from the all-time high has narrowed to 22% after a tremendous 26.5% weekly run.

A Bumpy Road Ahead for Solana ETF?

Despite favorable mentions of Solana as a member of this bull cycle’s big three, the altcoin is facing unique challenges compared to Bitcoin (BTC) and ETH. While Bitcoin Spot ETFs were cleared by the SEC on January 10, 2024, Ether’s ETF hopes drastically increased just two days before the Ethereum ETF deadline.

On May 21, Bloomberg’s pair of experienced analysts, Eric Balchunas and James Seyffart, tripled the odds for the timely Ether Spot ETF approval, from 25% to 75%. Bloomberg’s ETF experts noticed a sudden change in the Securities and Exchange Commission’s attitude towards the ETH ETF applicants, asking them to update their 19b-4s forms and submit the revised applications, which are currently under review by the SEC .

However, Seyffart noted in another tweet that Solana’s ETF chances are slimmer due to the lawsuits related to Kraken and COIN, as both lawsuits showed court filings that imply SOL is a security. ETH had a similar issue, but the SEC approved Ether’s Futures ETF in late 2023, paving the way for the ETH Spot ETF.

In Solana’s case, there are no SOL Futures ETFs approved yet, and a SOL Spot ETF could only come after the Commodity Futures Trading Commission (CFTC) approves a Futures ETF first. Because of this, Seyffart forecasts that SOL ETF “will happen within a few years of getting a CFTC regulated futures market,” while the recently-approved FIT21 Crypto Bill by the U.S. Congress could serve as the catalyst needed for Solana’s Spot ETF to go live.

On The Flipside

• As Solana’s Spot ETF chances are getting substantially higher, Bitcoin Maxis stepped into the ring to criticize the popular Layer-1 altcoin.
• To illustrate, The Bitcoin Therapist uttered : “This is the problem with including ETH into the spot ETF game. They’ve opened Pandora’s box of s***coins.”

Why This Matters

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