However, this prediction was met with skepticism from some industry experts. Nate Geraci, president of The ETF Store, argues that a spot Solana ETF is unlikely until Solana futures are traded on the Chicago Mercantile Exchange or a comprehensive cryptocurrency regulatory framework is established. So far, only Bitcoin and Ether futures have received approval in the U.S.
Bloomberg ETF analyst James Seyffart echoed Geraci’s sentiment, noting that such a development would follow the establishment of a Commodity Futures Trading Commission-regulated market, likely within a few years. Seyffart believes a spot Solana ETF would attract significant demand, second only to Bitcoin and Ether.
Despite the interest, Seyffart highlighted regulatory challenges, noting that the SEC has previously identified Solana as a security in lawsuits against Coinbase and Kraken. This designation could complicate the approval process for a spot Solana ETF.
Cinneamhain Ventures partner Adam Cochran offered a different perspective, suggesting that Litecoin (LTC) or Dogecoin (DOGE) might be more likely candidates for the next spot ETF due to their proof-of-work consensus mechanisms, which align more closely with regulatory expectations.
Few ETF issuers have openly discussed filing for a spot Solana ETF. Nonetheless, Franklin Templeton, a trillion-dollar asset management firm, recently praised Solana and its co-founder Anatoly Yakovenko, fueling speculation about potential future filings.
Bitwise’s chief investment officer, Matt Hougan, also expressed optimism about Solana, predicting it could be the "crypto asset of 2024" and exploring its real-world use cases that could attract institutional interest.
While the potential for a spot Solana ETF sparks debate, significant regulatory hurdles remain. The path forward will depend on SEC decisions and broader market developments.