By
Svetlana Soroka
June 14th, 2024
While some are clamouring to have a SOL spot ETF, others such as Bitwise Investment CEO Hunter Horsley see no reason for it.
As anticipation for the approval of spot Ether exchange-traded fund ETFs reaches its peak, certain individuals are beginning to demand similar products for other altcoins like Solana. According to market analysts, approval for a spot Ether ETF would most likely open up the door of access for others behind it.
Echoing this sentiment is Bloomberg’s James Seyffart. Seyffart sees the FIT21 Crypto Bill alongside the CFTC’s approval of a futures ETF as possible drivers of potential approval of a Solana spot ETF.
Spot SOL ETF Tipped to Come Next
For what it’s worth, rumors have been brewing concerning an SOL ETF. That is, in line with reports that Hong Kong might already be bracing up to approve an issuer’s application.
More recently, however, prominent voices such as BKCM CEO Brian Kelly have also been tipping the odds in the same direction. Kelly shared his view on the subject in a recent appearance on CNBC.
CNBC Guest believes $Sol will have the Next Spot ETF 🤯 pic.twitter.com/M79fSC6uJy
— Joshua Jake (@itzjoshuajake) May 22, 2024
Meanwhile, despite the seeming consensus, SOL faces unique challenges. A major part of this is that the U.S. Securities and Exchange Commission (SEC) has categorically stated that SOL is a security. Also, it currently lacks a futures ETF, making its ETF prospects even more problematic.
Possibly, that is what a major ETF issuer recently considered before announcing that it would not be launching ETFs beyond Bitcoin (BTC) and Ethereum (ETH) at this time.
Nonetheless, all hope is not lost. The approval of a futures ETF by the Commodity Futures Trading Commission (CFTC) is expected to ease the approval process of a SOL spot ETF in the coming months.
Mixed Reactions Trail Demand
While some are clamoring to have a SOL spot ETF, others such as Bitwise Investment CEO Hunter Horsley see no reason for it. According to Horsley, Bitwise’s 10 Crypto Index Fund already provides investors exposure to Bitcoin, Ethereum, Solana, and the top seven other altcoins.
Notably, another section of the crypto community is totally against the development. One Bitcoin maximalist, popularly known on social media platform X as “The Bitcoin Therapist,” has raised concerns about the potential introduction of a Solana ETF. He said this is what happens once Ethereum (ETH) is thrown into the mix of the spot ETF discusses. His X post reads in part:
“They’ve opened a Pandora’s box of shitcoins.”
It might be worth noting that SOL is the only altcoin currently receiving attention in terms of a potential ETF. There is a loud silence and a lack of demand for Litecoin (LTC) and Dogecoin (DOGE) ETFs.