Crypto investor and trader Brian Kelly has suggested that Solana (SOL) could potentially become the next cryptocurrency to have a spot exchange-traded fund (ETF) in the United States.

On a recent episode of CNBC’s ‘Fast Money’, Kelly, who also serves as the founder and CEO of the BKCM Digital Asset Fund, posed the question, “The trade now is, who’s next?”

He then suggested, “You’ve got to think about Solana as probably the next one. Bitcoin, Ethereum and Solana are probably the big three for this cycle.”

The speculation comes just a day before the Securities and Exchange Commission (SEC) is set to decide on at least one proposed spot Ether (ETH) ETF.

Solana ETF Might Not Come Next

However, not everyone shares Kelly’s optimism.

Nate Geraci, president of The ETF Store, expressed skepticism, stating that a spot Solana ETF might not materialize until a Solana futures product is listed on a major exchange or until Congress establishes a clear regulatory framework for cryptocurrencies beyond Bitcoin and Ethereum.

James Seyffart, an ETF analyst at Bloomberg, echoed Geraci’s sentiments, predicting that the launch of a spot Solana ETF could be years away, contingent upon regulatory milestones such as approval from the Commodity Futures Trading Commission (CFTC).

But SEC isn’t dancing around SOL’s status like they have ETH. Those lawsuits against COIN and Kraken and others flat out say “Solana is a security” lol. Which could very easily make this a very rocky road

— James Seyffart (@JSeyff) May 22, 2024

Despite the differing opinions, Seyffart highlighted the potential demand for a spot Solana ETF, suggesting it could surpass other digital assets outside of Bitcoin and Ethereum.

However, regulatory hurdles loom large.

The SEC, under the leadership of Gary Gensler, has previously categorized Solana as a security in lawsuits against Coinbase and Kraken, adding complexity to the path for potential ETF applicants.

Adam Cochran, a partner at Cinneamhain Ventures, offered a contrasting perspective, suggesting that either Litecoin (LTC) or Dogecoin (DOGE) might beat Solana to the ETF race due to perceived cleaner regulatory pathways, despite lower demand compared to Solana.

While few ETF issuers have openly discussed the possibility of filing for a spot Solana ETF, Franklin Templeton, a trillion-dollar asset management firm, recently praised Solana and its founder Anatoly Yakovenko.

This has fueled speculation about the firm’s potential interest in launching a Solana ETF in the future.

Fidelity Files Amended S-1 Application with SEC

As reported, Fidelity made an amended S-1 application to SEC for its spot Ether ETF yesterday. 

The updated application specifies that the underlying Ether tokens of the ETF will not be staked.

S-1 filings are mandatory registration forms required by the SEC for launching publicly traded securities products in the United States.

The speculation around the approval of spot Ether ETFs has also provided a boost to spot Bitcoin ETFs, which saw an uptick in inflows on Tuesday.

BlackRock’s iShares Bitcoin Trust (IBIT) witnessed a substantial inflow of $290 million on May 21, marking a reversal in the trend of zero or minimal inflows observed over the past six weeks.

The recent influx of funds into BlackRock’s ETF represents the highest level since April 5, eclipsing the cumulative inflows witnessed over the past 21 trading days.

On May 21, BTC reached a six-week high of $71,600, but it subsequently dipped below the $70,000 level during early trading on May 22, currently trading at $69,444 at the time of writing.

The post Fast Money’s Brian Kelly Says Solana is Next in Line For a US Spot ETF appeared first on Cryptonews.