As the approval of an Ethereum ETF spot looms today, investors are already looking towards the future. Could Solana (SOL) be the next candidate for an ETF ?

An SOL spot ETF after the Ethereum spot ETF ?

The crypto ecosystem is buzzing with a persistent rumor: the US Securities and Exchange Commission (SEC) could approve the first Ethereum ETF as early as today. This turn of events has sparked enthusiasm, especially since the Biden administration appears to be softening its stance on cryptocurrencies.

So, which cryptocurrency will be the next target for a spot ETF ? For many, the most likely candidate is Solana (SOL). Currently the fifth-largest cryptocurrency by market capitalization, SOL has shown impressive performance this year. This is the opinion of Brian Kelly, a CNBC journalist and CEO of BKCM Digital Asset Fund :

“Solana will probably be next. Bitcoin, Ethereum and Solana are probably the 3 big players in this cycle.”

This view is shared by Daniel Yan, co-founder of Matrixport, who also stated that a Solana spot ETF is likely the next step :

“SOL is next if an ETH ETF comes to be approved.”

The unique aspects of SOL compared to ETH

The excitement is tangible as ETH experiences a significant increase this week. However, SOL may face additional difficulties, according to some commentators. While the SEC has consistently refused to provide a clear answer to the question “Is ETH a security?”, this is not the case for SOL. In fact, it considers Solana to offer an asset governed by securities laws.

Therefore, the scenario could be different for SOL. There is also the fact that no current ETF manager has mentioned Solana yet. Another significant challenge is that there are currently no futures-based ETFs on Solana at the Chicago Mercantile Exchange, which is often seen as a preliminary step before the spot ETF.

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Nevertheless, SOL has recently had a particularly fruitful year, with a 796% increase over the past 12 months. For comparison, ETH has only increased by 105% during the same period. This positions SOL well to attract institutional investors’ attention.

Source : Daniel Yan via X, CNBC