Bloomberg analyst foresees spot Solana ETF following Ethereum approval

Approval of a spot Ethereum ETF by the U.S. securities regulator could pave the way for a similar fund for Solana, according to Bloomberg analyst James Seyffart.

Solana, the fifth-largest cryptocurrency by market value, might see its own spot exchange-traded fund (ETF) “within a few years” if the U.S. Securities and Exchange Commission (SEC) approves spot Ethereum ETFs, Seyffart indicated in a recent social media post.

In an X post on May 23, Seyffart didn’t rule out the possibility of a spot ETF for Solana (SOL) launching in the near future, depending on the Commodity Futures Trading Commission (CFTC) establishing a regulated futures market.

“Based on current precedent/needs [the approval of spot Solana ETF] Will happen within a few years of getting a CFTC regulated futures market.”

James Seyffart

The Bloomberg analyst also indicated that legislative measures such as the Financial Innovation and Technology for the 21st Century Act (FIT21) could accelerate this process, emphasizing that a spot Solana ETF would likely attract substantial demand, second only to Bitcoin (BTC) and Ethereum (ETH).

The FIT21 Act aims to establish a comprehensive regulatory framework for cryptocurrencies, providing clarity for their trading. However, SEC Chair Gary Gensler has already publicly opposed the bill, arguing that FIT21 would create “new regulatory gaps and undermine decades of precedent regarding the oversight of investment contracts, putting investors and capital markets at immeasurable risk.”

The Biden administration has also signaled its opposition to the bill, saying FIT21 “in its current form lacks sufficient protections for consumers and investors who engage in certain digital asset transactions.”

The discussion around a Solana spot ETF comes amid market anticipation for the SEC to approve a spot Ethereum ETF. If approved, this would set a significant precedent, likely paving the way for other altcoin-focused ETFs, including Solana.

The SEC’s decision on the spot Ethereum ETF proposal from VanEck is expected on May 23.