A recent prediction by Brian Kelly, founder and CEO of BKCM Digital Asset Fund, has ignited discussions among crypto enthusiasts.
On May 22, during the 'Fast Money' post-market show on CNBC, Kelly suggested that Solana (SOL) could be the next cryptocurrency to receive approval for a spot exchange-traded fund (ETF) in the United States.
His remarks come just ahead of the Securities and Exchange Commission's (SEC) decision on a proposed spot Ether (ETH) ETF.
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Kelly remarked that approval of Ethereum ETFs is inevitable and provided his views on the shift of focus in the market, saying:
I don't know if the Ethereum ETF gets approved today or next week, or the week after — it will get approved at some point in time. The trade now is, who's next?
He followed the question with a prediction that Solana would likely be the prime candidate following Bitcoin (BTC) and Ethereum, calling these cryptocurrencies "the big three for this cycle."
However, Kelly's prediction faced skepticism from several industry experts.
President of The ETF Store Nate Geraci argued that a spot Solana ETF is unlikely without the listing of a Solana futures product on the Chicago Mercantile Exchange or the establishment of a legitimate crypto regulatory framework by Congress. To date, only Bitcoin and Ether futures have received approval in the United States.
Echoing Geraci's caution, Bloomberg ETF analyst James Seyffart noted that the development of a spot Solana ETF would require a few years following the creation of a Commodity Futures Trading Commission-regulated market.
Adam Cochran, investor at Cinneamhain Ventures, proposed that Litecoin (LTC) or Dogecoin (DOGE) might be the next cryptocurrencies to see their spot ETFs. Cochran highlighted that despite their lower demand, Litecoin and Dogecoin's Proof-of-Work consensus mechanism, similar to Bitcoin’s, offers a "cleaner path" for ETF approval.
Despite the mixed opinions, Matt Hougan, Chief Investment Officer for Bitwise Asset Management, predicted that Solana could emerge as the "crypto asset of 2024," which adds to the optimism of a Solana spot ETF. Hougan highlighted various use cases for Solana that institutions might leverage, further boosting the network's appeal.
While Kelly’s forecast of a spot Solana ETF has sparked debate, the pathway to its realization remains fraught with regulatory and market challenges.
Meanwhile, on May 23, the SEC is set to make a decision for VanEck's spot Ether ETF application. Although the CEO of the investment firm, Jan van Eck, has previously expressed his doubts about the ETF being approved, five asset managers have recently updated their filings following SEC feedback, which indicates a potentially positive outcome.
