CNBC’s ‘Fast Money’ trader Brian Kelly sparked a heated discussion on Crypto X by predicting Solana (SOL) could be the next cryptocurrency to secure a spot exchange-traded fund (ETF) in the U.S.
Kelly voiced his prediction during the CNBC post-market talk show on May 22, just before the SEC’s decision on a proposed spot Ether (ETH) ETF.
“The trade now is, who’s next,”
said Kelly, who also leads the BKCM Digital Asset Fund.
“You’ve got to think about Solana as probably the next one. Bitcoin, Ethereum, and Solana are probably the big three for this cycle.”
Not everyone shared Kelly’s optimism. Nate Geraci, president of The ETF Store, argued that a spot Solana ETF is unlikely unless a Solana futures product is listed on the Chicago Mercantile.
“No sol ETF until either CME-traded sol futures exist or Congress puts legit crypto regulatory framework in place. Crypto ETF spigot turned off for a while after spot eth ETF approval… IMO”,
he noted.
Exchange or Congress implements clear cryptocurrency regulations. To date, the U.S. has only approved Bitcoin (BTC) and Ether (ETH) futures.
Echoing Geraci’s skepticism, Bloomberg ETF analyst James Seyffart suggested such a development could take years.
Seyffart believes that once a Commodity Futures Trading Commission-regulated market is established, a spot Solana ETF would attract significant demand, second only to Bitcoin and Ether.
However, he pointed out that the SEC, under Gary Gensler, has previously classified Solana as a security in lawsuits involving Coinbase and Kraken, which could pose challenges for future ETF applicants.
Contrarily, Adam Cochran, a partner at Cinneamhain Ventures, speculated that Litecoin (LTC) or Dogecoin (DOGE) might be next for a spot ETF.
“Much lower demand, but cleaner paths,”
Cochran said, noting that both cryptocurrencies use a proof-of-work consensus mechanism similar to Bitcoin.
The ongoing debate highlights the complexities and differing opinions surrounding the future of cryptocurrency ETFs in the U.S.
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