- Spot Ethereum ETF applicants received a boost this week.
- Speculation mounts that investment managers are eyeing other altcoin ETF products.
- Solana is touted as the next altcoin in line for ETF application.
Spot crypto ETF speculation has become all the rage after the staggering success of US Bitcoin ETF products, which have collectively amassed a jaw-dropping 828k BTC, valued at around $58 billion, since their inception. The overwhelming demand for Bitcoin exposure in a regulated, accessible wrapper set the stage for potential ETF expansion into other digital assets.
Investment managers initially faced an apparent lack of interest from the Securities Exchange Commission (SEC) when they submitted Ethereum ETF applications. However, this week saw the SEC request applicants re-submit their 19b-4 filings, sparking optimism about the chances of approval, while also igniting speculation that other altcoins, such as Solana, could soon be next in line.
Solana ETFs in the Pipeline?
Crypto investor Brian Kelly appeared on CNBC recently, voicing optimism for the regulatory approval of Ethereum ETF products. However, Kelly also posed the question of which altcoin is next for an ETF product, with his money on Solana being the next target for investment managers to push.
Although Kelly was bullish on the prospects of a Solana ETF, he wasn’t as hopeful about other altcoin offerings hitting the market anytime soon. “Bitcoin, Ethereum, and Solana are probably the big three for this cycle,” he stated, implying that other altcoins may have to wait a few more years before garnering serious ETF consideration.
Despite Kelly’s enthusiasm over a potential Solana ETF, SOL holders were split about the chances of approval. One Redditor pointed out, “The way they ICO’d isn’t exactly helpful. Remember, the SEC labeled SOL as a security (but not BTC or ETH).”
Another Redditor referred to the ongoing situation with Ethereum ETF applications, saying the odds of a Solana ETF dramatically increase if Ethereum ETFs are approved while adding that the regulatory and political headwinds appear to have shifted, as more Democrat politicians are “breaking away from the Warren/Biden anti-crypto brigade.”
FIT21 Passed Boosting Crypto Industry
Regulatory and political hostility toward the crypto industry may have taken a significant turn on Wednesday. The House passed the Financial Innovation and Technology for the 21st Century (FIT21) Act with a resounding 279-136 vote in favor.
Notably, the tally revealed that 71 Democrats had broken ranks to support the bill, signaling a potential shift in the political landscape surrounding crypto regulation and oversight.
Lawyer Jake Chervinsky dubbed the passing of FIT21 as a “vote of no confidence” in the SEC’s approach to crypto regulation, interpreting it as a warning to the Biden administration that maintaining an anti-crypto stance could cost them politically.
FIT21 is a comprehensive framework aimed at bringing consumer protections, clear rules, and regulatory clarity to foster a thriving digital asset industry in the US. Key provisions include establishing jurisdictional boundaries between the SEC and Commodity Futures Trading Commission (CFTC,), as well as measures to prevent fraud and market manipulation.
On the Flipside
- Some Bitcoin maxis oppose the approval of altcoin ETFs, citing speculative risk.
- Altcoin ETF products would be another milestone in the mainstream adoption of digital assets.
Why This Matters
Regulatory approval of Solana ETF products would represent a watershed moment for the crypto industry. However, it’s important not to get ahead, given that ETH ETFs have yet to be approved.
The rising popularity of Phantom Wallet suggests a growing interest in Solana.
Why Solana’s Phantom Wallet Is Topping App Store Charts
In a nod to Bitcoin Pizza Day, here’s what 10,000 BTC can buy in 2024.
10,000 Bitcoins Bought Pizza in 2010, What About Today?
