Bloomberg Analyst: Solana Slated for Approval as Spotlight Shifts Following Ethereum ETF

Solana SOL Cryptocurrency. Solana gold coins concept background with copyspace. 3D Rendering
  • As Ethereum ETFs approach approval, attention turns to other Altcoins, with Solana highlighted as a likely candidate.
  • Despite high demand, Bloomberg’s James Seyffart warns that approval for a Solana ETF could take years due to current regulatory scrutiny and its status as a security.
  • Legal clarity might lead to earlier ETFs for Dogecoin and Litecoin, according to analysts, despite potentially lower demand compared to Solana.

With the Spot Ethereum exchange-traded funds (ETFs) on a solid path to a full approval within the next months, investors’ attention turns to other Altcoins. Bloomberg ETF analyst James Seyffart believes the next to see a fund may be Solana or Litecoin.

Related: Nvidia Smashes Earnings Estimates, Fuels AI Boom and Altcoin Run

The comments were made after Brian Kelly, CEO and founder of digital asset investment company BKCM LLC, told CNBC he thinks Solana is potentially next in line:

You gotta think about Solana. Bitcoin, Ethereum and Solana are probably the big three for this cycle.

Brian Kelly, BKCM LLC

Solana ETF With Most Demand, Says Analyst

But Seyffart dampened any hopes that we will see a Solana ETF anytime soon. He said given the current situation and how long the Bitcoin and Ethereum approval process took it may be years until we see a Solana spot fund.


According to the analyst, SOL will need to have a futures fund for some years first before a spot fund can happen – although regulatory changes, as we have just witnessed with FIT21, may speed things up.

Other ETFs Could Be Approved First Based on Security Definition

But there could be a major obstacle in Solana’s path – the question of whether SOL is a security or not. Seyffart said that the “SEC isn’t dancing around SOL’s status like they have ETH”, pointing toward lawsuits brought against Kraken and others where the regulator clearly has deemed SOL a security.

While some argue that based on sufficient decentralisation Solana would likely fall under jurisdiction of the Commodity Futures Trading Commission (CFTC), Seyffart argues the SEC still “decides on the approval orders for all ETFs”.

He added:

And they aren’t approving an ETF holding a digital asset that has no federally regulated trading venues or federally regulated futures trading venues IMO.

James Seyffart

Adam Cochran of venture fund Cinneamhain Ventures said that due to a clearer legal path, he sees Dogecoin and Litecoin getting funds first – despite possibly lower demand.

Litecoin founder Charlie Lee said in April that he believed a Litecoin fund would potentially see less regulatory headwinds as it’s closer related to Bitcoin.

Then again, Lee also didn’t really believe in an Ether ETF, saying its “path to an ETF is much harder than Bitcoin’s”, and added that the security question still needs to be addressed.

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Aaron Feuerstein

Aaron Feuerstein

Aaron Feuerstein is a freelance writer based in Melbourne. His focus is on decentralised finance and the regulatory space surrounding blockchain. He holds a Master's in Accounting. When he is not studying the latest legal case, he enjoys his time as a modest but eager hobby cook.

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