- A final decision on VanEckโs Ethereum Spot ETF is due by today.
- Bloombergโs top analyst explains the key hurdles behind SOL ETF.
- BTC Maxis step into the ring to blast SECโs leniency towards altcoins.
The cryptosphere is anticipating a historic decision on Ether Spot ETF in the United States, as the Securities and Exchange Commission (SEC) prepares to announce its decision on May 23, 2024. As the anticipation grows, the self-proclaimed โEthereum Killerโ Solana (SOL) spurred to $180 on the hopes that SOL will be next on Gary Genslerโs list.
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As Ethereumโs Spot ETF decision looms, Etherโs recent bullish breakout to nearly $4,000 after a two-month hiatus planted rows of optimism among crypto investors. Meanwhile, Bloombergโs top financial analyst Brian Kelly has appeared on CNBC to ask the natural question: โWhoโs next?โ
Analyst Names Big Three of This Cycle
As the ball gets rolling, other TOP 5 contenders by global market capitalization are looking to establish their own products and services in the world of traditional finance. According to CNBCโs guest Brian Kelly, SOL has the highest chance of being the next in line to launch its own ETF products.
The financial analyst bases his argument on the SEC’s improvement in the legal framework. Naturally, the comment from Bloombergโs analyst sparked enthusiasm from Solanaโs community, but couldnโt evade harsh comments from BTC maxis.
As of press time, Solana (SOL) trades at $171.49, facing a 4.3% pullback over the latest 24-hour period. In comparison to ETH, Solana is still 34% away from the all-time peak of $259.96 in November 2021. Etherโs distance from the all-time high has narrowed to 22% after a tremendous 26.5% weekly run.
A Bumpy Road Ahead for Solana ETF?
Despite favorable mentions of Solana as a member of this bull cycleโs big three, the altcoin is facing unique challenges compared to Bitcoin (BTC) and ETH. While Bitcoin Spot ETFs were cleared by the SEC on January 10, 2024, Etherโs ETF hopes drastically increased just two days before the Ethereum ETF deadline.
On May 21, Bloombergโs pair of experienced analysts, Eric Balchunas and James Seyffart, tripled the odds for the timely Ether Spot ETF approval, from 25% to 75%. Bloombergโs ETF experts noticed a sudden change in the Securities and Exchange Commission’s attitude towards the ETH ETF applicants, asking them to update their 19b-4s forms and submit the revised applications, which are currently under review by the SEC.
However, Seyffart noted in another tweet that Solanaโs ETF chances are slimmer due to the lawsuits related to Kraken and COIN, as both lawsuits showed court filings that imply SOL is a security. ETH had a similar issue, but the SEC approved Etherโs Futures ETF in late 2023, paving the way for the ETH Spot ETF.
In Solanaโs case, there are no SOL Futures ETFs approved yet, and a SOL Spot ETF could only come after the Commodity Futures Trading Commission (CFTC) approves a Futures ETF first. Because of this, Seyffart forecasts that SOL ETF โwill happen within a few years of getting a CFTC regulated futures market,โ while the recently-approved FIT21 Crypto Bill by the U.S. Congress could serve as the catalyst needed for Solanaโs Spot ETF to go live.
On the Flipside
- As Solanaโs Spot ETF chances are getting substantially higher, Bitcoin Maxis stepped into the ring to criticize the popular Layer-1 altcoin.
- To illustrate, The Bitcoin Therapist uttered: โThis is the problem with including ETH into the spot ETF game. Theyโve opened Pandoraโs box of s***coins.โ
Why This Matters
Merging cryptocurrency with traditional banking services offers potential investors access to crypto in a regulated and transparent manner.
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