Spot Solana ($SOL) ETFs: The Next Frontier in Cryptocurrency Investments?

As a crypto investor with some experience in the market, I find Brian Kelly’s prediction about Solana (SOL) being the next cryptocurrency to get a spot exchange-traded fund (ETF) intriguing. Given his extensive knowledge and expertise in the field, I believe there is a possibility that SOL could indeed be the next major player in the crypto ETF space.


On May 22, 2024, Brian Kelly, a well-known crypto investor and CNBC’s “Fast Money” trader, posited that Solana (SOL) could be the next cryptocurrency to secure a U.S. exchange-traded fund (ETF) listing. This proposition has sparked an animated discussion among industry insiders and market analysts.

Known for his proficiency in cryptocurrencies and blockchain technology, Kelly serves as both a financial analyst and television personality. He is the founder and CEO of BKCM LLC, a firm specializing in investments related to digital currencies. Regularly appearing on CNBC, he offers insights and commentary on financial markets, with a specialized emphasis on cryptocurrency developments and investment plans. Kelly has also penned the book “The Bitcoin Big Bang: Unraveling the Widespread Impact of Alternative Currencies on Our World,” which delves into the transformative potential of Bitcoin and other digital currencies within the financial sector.

As an analyst, I’d interpret the Cointelegraph report by saying that during the CNBC post-show “Fast Money,” Kelly expressed his conviction that Solana could be the next significant cryptocurrency to secure a place in a spot Exchange-Traded Fund (ETF). In simpler terms, he believes that alongside Bitcoin and Ethereum, Solana is a strong contender for the top three cryptocurrencies during 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 an analyst, I would rephrase it as: I don’t share Kelly’s optimism regarding the creation of a Solana ETF. Nate Geraci, the president of The ETF Store, agrees. He believes that without a Solana futures product listed on the Chicago Mercantile Exchange or a clear regulatory framework for cryptocurrencies established by Congress, it is unlikely that we will see a spot Solana ETF come to market.

James Seyffart, a Bloomberg ETF analyst, shared Geraci’s warning. Seyffart proposed that a physically-backed Solana Exchange Traded Fund (ETF) would necessitate a market regulated by the Commodity Futures Trading Commission (CFTC), which he anticipates could emerge within the next few years. He indicated that such an ETF might experience substantial demand, trailing only Bitcoin and Ether. Nevertheless, Seyffart cautioned that the Securities and Exchange Commission (SEC) has previously identified Solana as a security in lawsuits against Coinbase and Kraken, which could create complications for future ETF applications.

According to existing trends and requirements, a CFTC-regulated futures market for a digital asset like SOL is predicted to emerge within a few years. However, legislative initiatives such as FIT21 in Congress could potentially expedite this process.— James Seyffart (@JSeyff) May 22, 2024

According to Adam Cochran, a partner at Cinneamhain Ventures, he holds a different perspective than Kelly and Seyffart. Instead of Ethereum or Bitcoin, Cochran believes that either Litecoin (LTC) or Dogecoin (DOGE) could potentially be the next cryptocurrencies to be adopted by an Exchange-Traded Fund (ETF).

I think you get LTC and DOGE first.Much lower demand, but cleaner paths.— Adam Cochran (adamscochran.eth) (@adamscochran) May 22, 2024

As I pen this down (8:47 a.m. UTC on May 23), Solana’s price hovers around $177.31. This represents a 1.6% decrease in the previous 24-hour span. However, it’s important to note that in the year-to-date trend, SOL has registered a substantial growth of over 70% against the USD.

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2024-05-23 12:05