Solana ETFs Next? Spot Ether Approval Paves Way for Broader Recognition, Analysts Say

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As a seasoned crypto investor with a keen eye on market trends and regulatory developments, I cannot help but be excited about the potential approval of spot Ether exchange-traded funds (ETFs) in the United States. This is a significant step forward for cryptocurrency regulation and could pave the way for other assets to follow suit, such as Solana ($SOL).

As an analyst at Bernstein, I’ve observed that the potential approval of spot Ether exchange-traded funds (ETFs) in the US has given a substantial boost to the cryptocurrency market. This is an important stride forward in the regulation of cryptocurrencies. Furthermore, we believe that Solana ($SOL) ETFs could be the next to follow this path.

Based on a recent study published by the brokerage firm, indicating potential upcoming SEC approval for a Spot Ether ETF, analogous consideration may be given to other digital currencies.

As an analyst, I’ve reviewed Bernstein’s report and observed that Gautam Chhugani and Mahika Sapra expressed optimism about the potential approval they saw, suggesting a softer regulatory stance potentially influenced by the upcoming November elections. They further hypothesized that should Donald Trump win the presidency, there could be significant legislative and agency support for crypto assets with a change in SEC leadership.

The report brings attention to an important point: A proposed Ether ETF could establish a significant precedent as it would be the first time a non-Bitcoin cryptocurrency is categorized as a commodity. This classification might pave the way for similar treatment of Ethereum‘s competitors, such as Solana.

Significantly, Brian Kelly of CNBC’s “Fast Money” has proposed that a Solana ETF might emerge next, as he believes Bitcoin, Ethereum, and Solana are the primary contenders for this market cycle.

Oh weird @cnbc says $SOL is the next ETF.Hmm, where have I heard that before… — ◢ J◎e McCann 🧊 (@joemccann) May 22, 2024

As a researcher, I’ve observed that Robinhood and Coinbase have gained significant insight into the distinction between securities and non-securities following regulatory clarifications. These companies appear to be the primary recipients of the benefits that come with this newfound understanding in the cryptocurrency market.

Expert: According to Bernstein’s analysis, Ethereum could experience a price jump akin to Bitcoin’s 75% surge following the approval of its spot Exchange Traded Funds (ETFs). Meanwhile, Ethereum’s price has already risen by over 20% this week due to heightened optimism regarding the potential approval of these funds.

As a researcher studying the cryptocurrency market, I’ve found that Ether’s free float and supply are noteworthy features. Approximately 38% of its total supply is locked in staking and decentralized finance protocols. Furthermore, a considerable portion of the remaining supply has been inactive for over a year.

From my research as a data analyst, I’ve discovered that the number of small Ethereum (ETH) investors holding 10 ETH or less, equivalent to approximately $37,500, has recently reached an unprecedented peak. Conversely, larger investors appear to be lagging behind, having sold off a significant portion of their holdings during the past few months.

Based on information from on-chain analysis company Santiment, there has been a new record of 121.74 million smaller Ethereum wallets following the recent increase in ETH prices. On the other hand, Ethereum holders with between 10 and 10,000 ETH (approximately $37,500 to $37.5 million) have experienced a decline of approximately 5.8% in value this year.

As a crypto investor holding a significant amount of Ethereum, I’ve noticed that larger whales, those of us with over $37.5 million in ETH in our wallets, have experienced a 10.6% decrease in total holdings due to selling off our Ethereum supplies over the past few months.

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2024-05-24 05:07