Solana: The Dark Horse in the Crypto ETF Race as Ethereum Surges

• Brian Kelly predicts Solana as next possible crypto spot ETF.
• Solana ETF approval faces regulatory hurdles, experts say.
• Some experts favor Litecoin or Dogecoin for the next ETF due to their simpler mechanisms.

Crypto investor Brian Kelly suggested Solana (SOL) could be the next cryptocurrency to secure a spot exchange-traded fund (ETF) in the US, following the SEC’s anticipated decision on a spot Ether ETF.

Kelly, who is also the CEO of BKCM Digital Asset Fund, believes Solana is one of the “big three” coins alongside Bitcoin and Ethereum. However, some industry analysts disagree.

Approval for a spot Solana ETF hinges on a futures product being listed on the Chicago Mercantile Exchange (CME) or the establishment of a clear regulatory framework from Congress. Currently, only Bitcoin and Ether futures have been approved.

Even if approved, experts believe there would be significant demand for a Solana ETF, potentially surpassing all other digital assets except Bitcoin and Ether. However, the SEC’s classification of Solana as a security in past lawsuits could pose challenges.

Others like Adam Cochran of Cinneamhain Ventures believe Litecoin or Dogecoin might be next due to a “cleaner path” with proof-of-work mechanisms similar to Bitcoin.

While few ETF issuers have spoken of a Solana ETF, Franklin Templeton’s recent praise for Solana has sparked speculation. Additionally, Bitwise’s Matt Hougan has called Solana the “crypto asset of 2024” due to its institutional potential.

Market analysts who predicted that Solana (SOL) would surpass Ether (ETH) in the upcoming bull run are facing a reality check as ETH stages an impressive surge. On Monday, Ether (ETH) recorded gains exceeding 19%, boosting its market capitalization by a significant $70 billion. This surge brings ETH’s overall market cap to $439 billion, narrowing the gap with Solana’s total market value.