Can the US SEC Under Gary Gensler Approve a Solana ETF Next? SOL Could Reach These Price Levels

• Solana may be the next cryptocurrency to receive an ETF in the U.S.
• The approval faces challenges due to SEC’s classification of Solana as a security and the absence of a futures ETF.

Following recent predictions updated by CNF earlier this May, where Michael Saylor suggested that Ethereum could face SEC classification as a security, a similar spotlight now shines on Solana (SOLUSD). According to today’s update shared on Trading View, during the CNBC post-market talk show “Fast Money” on May 22, Brian Kelly, CEO of BKCM Digital Asset Fund, proposed that Solana could be the next cryptocurrency to secure an ETF, potentially joining the ranks of Bitcoin and Ethereum in the ETF sphere.

Can the US SEC Under Gary Gensler Approve a Solana ETF Next?

As further detailed in the Trading View post, the discussion on the potential approval of a spot Solana ETF took center stage during the CNBC post-market talk show Fast Money on May 22. Here are three key points from the discussion:

1. Brian Kelly, CEO of BKCM Digital Asset Fund, during the CNBC show Fast Money, suggested that Solana could be the next cryptocurrency to secure an ETF, ranking it among the big three for this investment cycle alongside Bitcoin and Ethereum.
2. Nate Geraci, president of The ETF Store, and James Seyffart, Bloomberg ETF analyst, both expressed skepticism about the immediate approval of a spot Solana ETF. They highlighted the need for either a CME-traded Solana futures product or a comprehensive regulatory framework from Congress, and noted that it could be years before a Commodity Futures Trading Commission-regulated market is established for Solana.
3. Concerns were noted by James Seyffart about the SEC’s previous classification of Solana as a security in legal actions against major platforms like Coinbase and Kraken, which could complicate any attempts to launch a spot Solana ETF in the near future.

The conversation was further fueled by Collin Brown, who highlighted on Twitter that despite speculations in Hong Kong about an impending SOL ETF, the lack of a Solana futures ETF and its SEC classification as a security present substantial challenges.

BKCM CEO Brian Kelly stated on CNBC that #Solana has the potential to become the next cryptocurrency ETF. There have been previous speculations in Hong Kong regarding the possibility of an SOL ETF being prepared by the issuer. However, unlike #BTC and #ETH, SOL currently lacks… pic.twitter.com/yESssqt61l

— Collin Brown (@CollinBrownXRP) May 23, 2024

Currently, Solana trades at $177.08, having risen by 9.06% over the past week. This uptick in price reflects growing investor interest and speculation about its future in ETFs. However, the path forward is fraught with regulatory and market challenges that could influence its acceptance and success in the ETF marketplace.

The question remains: Can the US SEC under Gary Gensler clear the path for a Solana ETF? The answer will significantly impact Solana’s price levels and its standing within the broader cryptocurrency market.

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