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>>Fast Money's Brian Kelly suggests that Solana is poised to receive its own US-listed exchange-traded fund.

Fast Money's Brian Kelly suggests that Solana is poised to receive its own US-listed exchange-traded fund.

crypthub

1/24/2025, 11:52:03 AM

Predictions and Potential for Solana ETF

Brian Kelly, a crypto investor and trader, expresses his belief that Solana (SOL) is poised to become the next cryptocurrency to gain an exchange-traded fund (ETF) in the United States. He positions it as one of the "big three" cryptocurrencies in the current cycle, alongside Bitcoin and Ethereum. This claim comes ahead of the Securities and Exchange Commission's (SEC) decision on a proposed spot Ether (ETH) ETF.

Skepticism and Regulatory Challenges

Not all experts share Kelly's optimism. Nate Geraci, president of The ETF Store, argues that a spot Solana ETF is unlikely without a Solana futures product listed on a major exchange or a clearer regulatory framework from Congress, going beyond Bitcoin and Ethereum. James Seyffart, Bloomberg ETF analyst, agrees, suggesting a launch could be years away, dependent on approvals from regulators like the Commodity Futures Trading Commission (CFTC).

Regulatory Hurdles for Solana's ETF Path

The SEC, under Gary Gensler, has previously classified Solana as a security in lawsuits against Coinbase and Kraken, creating regulatory complexities for potential applicants. Industry experts speculate that Litecoin (LTC) or Dogecoin (DOGE), due to perceived clearer paths, might secure an ETF listing before Solana despite lower demand.

Franklin Templeton's Interest and Fidelity's Application

Despite few public discussions, Franklin Templeton has praised Solana and its founder, fueling speculation about a potential Solana ETF from the firm. Simultaneously, Fidelity filed an amended S-1 application with the SEC for its spot Ether ETF, specifying that underlying Ether tokens will not be staked.

Spot Bitcoin ETFs See Increased Inflows

The speculation around spot Ether ETFs has positively impacted spot Bitcoin ETFs. BlackRock’s iShares Bitcoin Trust (IBIT) experienced a substantial inflow of $290 million on May 21, marking a significant reversal from the previous six weeks' trend of minimal inflows. Bitcoin itself reached a six-week high of $71,600 on the same day before dipping below $70,000 in early trading on May 22.