As the anticipation builds around the SEC’s potential approval of spot Ethereum (ETH) exchange-traded funds (ETFs), experts are turning their attention to the possibility of other cryptocurrencies, like Solana (SOL), gaining similar recognition.

Industry leaders are discussing whether Solana could be the next asset to see the introduction of spot ETFs, a move that could significantly impact the crypto market.

In a recent CNBC appearance, Brian Kelly, CEO of digital currency investment firm BKCM, highlighted Solana’s potential, noting that Bitcoin, Ethereum, and Solana are the top three cryptocurrencies for this cycle. Furthermore, Kelly suggested that if the SEC approves spot Ethereum ETFs, it would provide clearer regulations for Ethereum and the broader market. This potentially leads to the approval of more spot crypto ETFs, including Solana.

Read more: Crypto ETN vs. Crypto ETF: What Is the Difference?

ETF analyst James Seyffart of Bloomberg Intelligence offered insights in response to Kelly’s speculation. Seyffart emphasized the regulatory hurdles Solana faces, particularly due to its current classification as a security by the SEC.

“Based on current precedent/needs — Will happen within a few years of getting a CFTC regulated futures market. But Congress & Market structure bills like FIT21 could make it happen quicker. I think a SOL ETF would see most demand vs other digital assets (aside from BTC & ETH). But SEC isn’t dancing around SOL’s status like they have ETH. Those lawsuits against Coinbase and Kraken and others flat out say ‘Solana is a security’. Which could very easily make this a very rocky road,” Seyffart noted.

Despite the challenges, Seyffart acknowledged the demand for Solana ETFs. However, he suggested that Litecoin (LTC) might see ETF approval first, albeit with less market interest. Crypto journalist Laura Shin added that while Litecoin might have “little regulatory baggage,” Solana makes sense from a usage and fundamentals perspective.

The crypto community eagerly awaits the SEC’s official decision on spot Ethereum ETFs, which could set the stage for future approvals. ETF analyst Eric Balchunas speculated that an announcement might come around 16:00 today. His prediction was based on the timing of the SEC’s approval of spot Bitcoin ETFs in January.

Read more: Ethereum ETF Explained: What It Is and How It Works

As the market watches closely, discussions around Solana and other potential spot ETFs continue to evolve, highlighting the complexities and opportunities within the crypto regulatory environment.

The post Experts Discuss Regulatory Challenges and the Potential for Spot Solana ETFs appeared first on BeInCrypto.

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