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BKCM CEO Brian Kelly recently predicted CNBC’s “Fast Money” that Solana (SOL) could be the next cryptocurrency with a spot exchange-traded fund (ETF) in the United States. Kelly’s prediction came against growing interest in cryptocurrencies and anticipation of the SEC’s decision regarding proposed spot Ether ETFs.
Brian Kelly’s Key Points
Kelly said that Solana is ranking alongside Bitcoin (BTC) and Ethereum (ETH) as one of the leading cryptocurrencies for this market cycle, but his bold prediction immediately faced some pushback from industry experts, citing several significant regulatory and market challenges.
First and foremost, the SEC has classified Solana as a security—a fact invoked in lawsuits against major exchanges like Coinbase and Kraken. As such, it complicates its pathway to approval. Unlike BTC and ETH, neither of which currently has a spot ETF but do have futures ETFs, Solana does not have this crucial market infrastructure.
ETF analyst James Seyffart of Bloomberg Intelligence added that the crypto requires a Solana futures product listed on the Chicago Mercantile Exchange or a robust cryptocurrency regulatory framework by Congress before any spot ETF.
Current Status and Future Prospects
Currently, Bitcoin and Ether are the only two cryptocurrencies with approved futures ETFs in the U.S. The leading ETF issuers have also expressed little interest in launching ETFs beyond the two digital assets. BlackRock, a prominent ETF issuer, has stated no plans for launching ETFs for other altcoins, including Solana.
Despite those regulatory challenges, the demand for a Solana ETF seems strong. Seyffart thinks the interest from investors, outside of Bitcoin and Ether, would be enormous for Solana. However, these legal hurdles could make this a very long, rocky road.
Nate Geraci, president of The ETF Store, supported Seyffart’s assessment that there probably wouldn’t be a spot Solana ETF without the futures market and clearer rules. He said Congress needs to institute a legitimate regulatory framework for cryptocurrencies before such a product stands any chance of approval.
Contrarian Views
Not everyone agrees with Kelly’s prediction. Adam Cochran, a partner at Cinneamhain Ventures, believes that Litecoin (LTC) or Dogecoin (DOGE) might be the next cryptocurrencies to get ETF approval due to their simpler regulatory profiles.
Both Litecoin and Dogecoin operate on a proof-of-work consensus mechanism, similar to Bitcoin, which may make their regulatory pathways less contentious.
The market climate is always fluid, and the SEC’s position could change with the continued regulation coming out. The decision for spot Ether ETFs could be a huge one, possibly paving the way for an approval of ETFs for other digital assets, including Solana.