Solana News: Is a Solana ETF Next? Industry Experts Weigh the Odds
Crypto News– As investors eagerly await the potential approval of an Ethereum ETF in the U.S. on Thursday, attention is shifting toward which cryptocurrency might be the next to receive such a significant regulatory milestone. Among the contenders, Solana stands out as a strong candidate, drawing considerable interest from industry insiders and market participants alike.
CNBC presenter Brian Kelly recently highlighted Solana as a likely prospect for the next major ETF. You got to think about Solana as probably the next one, Kelly remarked on Wednesday. Bitcoin, Ethereum, and Solana are probably the big three for this cycle. His comments reflect a broader sentiment within the crypto community that Solana, with its unique attributes and market performance, is poised for significant growth.
Joe McCann, CEO of crypto investment firm Asymmetric Finance and a staunch advocate of Solana, echoed Kelly’s optimism. Given its stature in the market, Solana must be on deck, McCann asserted. He pointed to Solana’s robust market position and technological advantages as key factors that could support the launch of a Solana ETF.
Solana’s performance this year underscores the bullish sentiment. According to data from CoinGecko, SOL has surged by more than 68% in 2024. With a market capitalization exceeding $77 billion, Solana has firmly established itself as the fifth-largest cryptocurrency. This impressive growth is driven by Solana’s high-speed blockchain technology, which offers low transaction costs and scalability, making it a favorite among developers and users.
The anticipation for a Solana ETF extends beyond its market performance. Solana’s blockchain is renowned for its efficiency and capability to handle a high volume of transactions with minimal fees. This technical prowess, combined with its growing adoption in various sectors, adds weight to the argument for why Solana could be the next cryptocurrency to receive ETF approval.
The broader crypto ecosystem also points to Solana’s potential. As regulatory frameworks evolve and more cryptocurrencies gain acceptance, Solana’s robust infrastructure and strong community support make it an ideal candidate for an ETF. The introduction of a Solana ETF would not only validate its market position but also provide investors with more diversified opportunities to gain exposure to digital assets.
Revved-Up DeFi Market
The introduction of an Ethereum ETF, coming just four months after spot price Bitcoin funds entered the market, is providing a significant boost to the DeFi market. Over the past week, Ether has surged by 29%, a performance that is nearly six times better than Bitcoin’s.
Solana, however, has outperformed even this impressive gain. Its success can be attributed to a few key factors. Earlier this year, Solana strategically embraced memecoins, capturing the interest and investment of the crypto community. Additionally, Solana has ventured into unique and innovative projects, such as the rollout of a new mobile phone called Chapter 2. These moves have not only broadened Solana’s appeal but also demonstrated its versatility and commitment to expanding its ecosystem.
As a result, Solana has seen remarkable growth, outperforming many of its peers in the cryptocurrency market. This combination of strategic innovation and market savvy has positioned Solana as a strong contender in the evolving landscape of digital assets, making it a focal point for investors and industry watchers alike.
Solana futures?
Nate Geraci, co-founder of the ETF Institute and President of the ETF Store, shares a pessimistic outlook regarding the approval of a Solana ETF. He believes that such an approval is unlikely to happen until the market sees the introduction of Solana futures contracts.
Drawing a parallel to the path taken by Bitcoin and Ethereum, Geraci points out that futures contracts for Bitcoin were approved for trading on the Chicago Mercantile Exchange (CME), one of the largest derivatives exchanges in the world, long before the approval of a spot Bitcoin ETF. The same process applied to Ethereum, which saw its futures contracts approved before any spot ETFs were given the green light.
Geraci emphasizes that a similar sequence would be necessary for Solana. Before a Solana ETF can be approved, there must first be an establishment of Solana futures contracts. This step is crucial for providing the necessary market structure and regulatory oversight that precedes the approval of any spot ETF.
Moreover, Geraci underscores the need for a clear regulatory framework for digital assets in the US, which must be established by Congress. Without this regulatory clarity, the approval of new cryptocurrency ETFs, including one for Solana, remains a distant prospect. He suggests that the regulatory landscape for digital assets needs to be more defined and stable to support the introduction of innovative financial products like a Solana ETF. Until such a framework is in place, the likelihood of seeing a Solana ETF approved remains slim, according to Geraci.
FAQs
What is a Solana ETF, and why is it significant?
A Solana ETF (Exchange-Traded Fund) would allow investors to gain exposure to Solana (SOL) without directly purchasing the cryptocurrency. This would make it easier for traditional investors to invest in Solana, potentially increasing its market value and adoption.
Who are the four industry experts sharing their predictions?
The article includes insights from Brian Kelly, a CNBC presenter; Joe McCann, CEO of Asymmetric Finance; Nate Geraci, co-founder of the ETF Institute and President of the ETF Store; and other unnamed experts in the cryptocurrency and financial sectors.
What are Brian Kelly’s views on a Solana ETF?
Brian Kelly suggests that Solana is a strong candidate for the next cryptocurrency ETF after Bitcoin and Ethereum, citing its prominent position in the current market cycle.
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