BKCM CEO Brian Kelly made headlines when he suggested on CNBC that Solana (SOL) could be the next cryptocurrency with an exchange-traded fund (ETF).
Speculation Grows on Potential Solana ETF Amid Market Uncertainty
The announcement reignited debate in the financial community, particularly after similar speculation emerged in Hong Kong earlier this year that an issuer might be preparing a SOL ETF.
But Kelly acknowledged some hurdles that could hinder the launch of a Solana ETF. Unlike Bitcoin (BTC) and Ethereum (ETH), Solana does not currently have a futures ETF, a factor that simplifies the process for regulators and issuers.
In addition, the U.S. Securities and Exchange Commission (SEC) classified Solana as a security, further complicating its path to becoming an ETF.
Despite these challenges, the potential for a Solana ETF continues to generate buzz. Known for its high transaction speeds and low costs, Solana has gained significant traction within the crypto community.
An ETF will likely appeal to a broader audience of investors by increasing its legitimacy and accessibility.
The crypto market is keenly watching developments on this front, as the successful launch of a Solana ETF could signal a new phase of growth and adoption for alternative cryptocurrencies beyond Bitcoin and Ethereum.
However, given the regulatory environment and expressed reservations from major issuers, the realization of a Solana ETF remains uncertain.
*This is not investment advice.