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Speculation Heats Up Over Potential Solana ETF Following CNBC Trader's Comments

"Speculation about a Solana ETF intensifies after CNBC's Brian Kelly predicts Solana could be next in line for an ETF in the U.S., sparking a lively debate among experts."

The cryptocurrency community is abuzz with speculation after CNBC's 'Fast Money' trader and noted crypto investor Brian Kelly hinted that a Solana (SOL) spot exchange-traded fund (ETF) might be on the horizon in the United States. This statement has ignited a debate among industry experts and investors about the feasibility and timing of such a development.

Brian Kelly Elevates Solana to "Big Three" Status

During an episode of CNBC's post-market show 'Fast Money' on May 22, Kelly discussed the future of cryptocurrency ETFs, placing Solana alongside Bitcoin and Ethereum as the "big three" of this cycle. His comments come just as the Securities and Exchange Commission (SEC) prepares to make a decision on an Ether (ETH) spot ETF.

"The trade now is, who’s next," Kelly posed to viewers, suggesting that "Solana is probably the next one" in line for ETF consideration.

Industry Experts Weigh In

While Kelly's prediction has sparked excitement, some industry observers are skeptical. Nate Geraci, president of The ETF Store, argued that a spot Solana ETF is unlikely without prior establishment of a Chicago Mercantile Exchange-traded Solana futures product or a solid regulatory framework from Congress. Currently, only Bitcoin and Ether futures have obtained approval in the U.S.

James Seyffart, an ETF analyst from Bloomberg, concurred with Geraci, estimating that such a development might be a few years away. He also noted that while a spot Solana ETF would likely attract significant interest, regulatory challenges could arise, especially since SEC Chair Gary Gensler has previously designated Solana as a security in legal actions against platforms like Coinbase and Kraken.

Contrarian Views and Broader Implications

Adding another perspective, Adam Cochran of Cinneamhain Ventures suggested that coins like Litecoin (LTC) or Dogecoin (DOGE) might be more viable candidates for the next spot ETF due to their "cleaner paths," despite potentially lower demand.

The discussion was further fueled by comments from the CEO of asset management giant Franklin Templeton, who recently lauded Solana's potential. This has led to speculation that Franklin Templeton might consider filing for a Solana ETF, especially given the firm's positive stance on blockchain technology's role in the future of ETFs and mutual funds.

Matt Hougan, chief investment officer at Bitwise, has also highlighted Solana’s promise, labeling it as the "crypto asset of 2024" and exploring its practical applications for institutional use.

The Future of Solana and Crypto ETFs

As the crypto industry continues to evolve, the idea of a Solana ETF represents just one of many potential developments that could shape the market. With varying opinions and ongoing regulatory scrutiny, the path forward for Solana and other cryptocurrencies in the ETF space remains complex but intriguing.