The US SEC (Securities and Alternate Fee) has authorized two forms of cryptocurrency ETFS (Alternate Traded Funds) this yr. The monetary watchdog authorized the spot Bitcoin (BTC) ETFs in January and the spot Ethereum (ETH) ETFs earlier this month. The event has opened the dialogue of which crypto will obtain an ETF subsequent, Solana (SOL), Ripple’s XRP, or one thing else.
Whereas talking to CNBC, BKCM founder Brian Kelly stated that Solana (SOL) may very well be the following cryptocurrency to obtain ETF approval. Kelly known as Bitcoin, Ethereum, and Solana the massive three of this cycle.
Bloomberg analyst James Seyffart agreed with Kelly. Seyffart believes an SOL ETF could have extra demand than different digital belongings, other than BTC and ETH. Seyffart stated the Monetary Innovation and Expertise for the twenty first Century (FIT21) invoice will pace up a SOL ETF launch. Moreover, Seyffart believes a SOL ETF will debut after a couple of years of a CFTC-regulated futures market.
Solana ETF to make a debut earlier than XRP ETF?
In response to Seyffart, Ripple’s ongoing lawsuit with the SEC is a barrier for an XRP ETF this yr. Nonetheless, Ripple CEO Brad Garlinghouse is assured the SEC will approve an XRP ETF. Garlinghouse highlights that XRP and BTC are the one cryptocurrencies with regulatory readability.
In response to Geoffrey Kendrick, head of crypto analysis and rising market foreign currency echange at Normal Chartered, it is just a matter of time earlier than the SEC approves different crypto ETFs. In response to Kendrick, Solana (SOL) and XRP are among the many prime decisions that will get an ETF approval from the authorities. Kendrick additionally notes that the SEC in all probability doesn’t think about cryptocurrencies just like ETH, akin to XRP, as securities attributable to their core technological similarities.
