CNBC’s Fast Money Trader Solana Says ETF Next ‘Maybe’, Sparks Debate
Crypto investor and CNBC's ‘Fast Money' trader Brian Kelly sparked a debate on Crypto X on Wednesday by suggesting that Solana (SOL) could be the next cryptocurrency to acquire an exchange-traded fund (ETF) in the United States.
Kelly made the prediction during CNBC's post-market talk Fast Money on May 22, a day before the Securities and Exchange Commission is set to rule on at least one proposed spot ether (ETH) ETF.
Oh guest @cnbc says $SOL is the next ETF.
Hmm, where have I heard that before… pic.twitter.com/aYAedMhcM0
— ◢ Joe McCann (@joemccann) May 22, 2024
“The business is now, who's next?” said Kelly, founder and CEO of BKCM Digital Asset Fund. She asked:
“You should probably think of Solana as next. Bitcoin, Ethereum and Solana are probably the big three for this cycle.
Some industry observers disagreed with Kelly's prediction.
ETF Warehouse President Nate Geracchi believes Solana ETFs will not exist until the Chicago Mercantile Exchange-traded Solana futures are listed or until Congress enacts a legal regulatory framework for cryptocurrencies.
Only Bitcoin (BTC) and Ether (ETH) futures are allowed in the US so far.
Bloomberg ETF analyst James Seifert shared Jerasin's sentiment, noting that such a development would take place “within a few years” of having a market regulated by the Commodity Futures Trading Commission.
Seyffart believes that somewhere the Solana ETF will see more interest than digital assets other than Bitcoin and Ether.
However, Seifert also noted that Gary Gensler and the SEC have pointed to Solana as a security in previous Coinbase and Kraken lawsuits, which could complicate things for future applicants.
Adam Cochrane of Cinemahain Ventures had the opposite view, believing that Litecoin (LTC) or Dogecoin (DOGE) will be the next coin to be included in a space ETF instead.
“Very low demand, but clean roads,” Cochran said. Litecoin and Dogecoin are both powered by a proof-of-work consensus mechanism like Bitcoin.
Related: Franklin Templeton CEO Says All ETFs and Mutual Funds Will Be on Blockchain
Few ETF issuers have offered to subscribe to the Spot Solana ETF.
However, trillion-dollar asset management firm Franklin Templeton recently praised Solana and its co-founder Anatoly Yakovenko, sparking speculation that the firm may file for a Solana ETF in the future.
Bitwise Chief Investment Officer Matt Hogan has predicted that Solana will be the “crypto asset of 2024” and recently explored the real-world use cases that institutions on the network could tap into.
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