The cryptocurrency community is eagerly awaiting news regarding the potential endorsement of a spot Ethereum ETF by the US Securities and Exchange Commission (SEC).
According to Daniel Yan, one of the co-founders of Matrixport, there's speculation that Solana (SOL) might follow suit as the next candidate for such approval.
Possible Next ETF Approval: Solana
There is a lot of conjecture about which cryptocurrency may be the next as the SEC's decision regarding a spot Ethereum ETF approaches. Daniel Yan compares Solana to the approval of the Bitcoin ETF, which increased Ethereum's valuation and market attention, and thinks that Solana is a strong contender who might profit from Ethereum's predicted success.
In fact, the ETH/BTC pair increased by 12% in less than a week following the US debut of the spot BTC ETF. A co-founder of Matrixport speculates that Solana might gain comparable traction.
People in the cryptocurrency world are also aggressively guessing that applications for ETFs on other altcoins would surely follow the approval of a spot Ethereum ETF. Ted, a well-known cryptocurrency analyst, also alluded to the potential for spotting ETF filings.
"The market is definitely not priced for this... prepare for a plethora of spot altcoin filings if it is approved." Cough, cough SOL," was his comment.
However, some analysts think that because the SOL futures ETF is not yet listed, it may be difficult to apply for a spot ETF for Solana. Solana lacks this crucial step, which would prevent it from being immediately considered for a spot ETF. In contrast, Bitcoin and Ethereum both had actively trading futures ETFs at the time of their approvals as spot ETFs.
"It's understandable for the crypto community to be enthusiastic about the possibility of a Solana ETF being introduced, but this seems unlikely. Solana currently lacks listed futures. Instead, assets such as BCH, LTC, and even Doge, given their presence on CFTC-regulated Coinbase Derivatives, appear to be positioned ahead of Solana. This isn't unexpected, particularly for fair launch POW chains," stated Dimitrios Kavvathas, Founder of Ithaca.
SOL Trading Products Associated with TradFi
Although there aren't any Solana ETFs authorized in the US right now, there are substitutes like the Grayscale Solana Trust (GSOL) and derivative-based products like VanEck's Solana ETN and 21Shares' Solana ETP that provide exposure to SOL pricing. With the help of these products, investors can trade SOL indirectly while keeping track of its price fluctuations.
SOL has increased by more than 23% in the last week, suggesting increased speculation and interest. This remarkable increase is indicative of increased investor excitement and trust in Solana's prospects.
It might soon follow Bitcoin and Ethereum in receiving approval as an ETF under the correct regulatory framework, which would represent a significant milestone in its development. Even while there are still obstacles to overcome, business titans like Daniel Yan's optimism proves that audacious dreams may come true.
May 2024, Cryptoniteuae