Which Crypto Asset Will Get Its Own ETF After Ether (ETH)? Experts Weigh In

With the approval of Ether (ETH) spot exchange-traded funds (ETFs), the crypto community is buzzing with speculation about which digital asset might be next.

The approval of Ether (ETH) spot exchange-traded funds (ETFs) has sparked speculation within the crypto community regarding the next digital asset to be approved. While experts hold varying opinions, candidates such as Solana, Dogecoin, XRP, and Litecoin have been mentioned.

In a recent appearance on the Bits + Bips podcast, Joe McCann, founder, CEO, and CIO of Asymmetric, expressed his belief that Solana is the most likely candidate to be approved for an ETF following ETH.

“I think Solana is probably going to be next,” McCann stated. Despite regulatory uncertainties, McCann highlighted the substantial interest generated by Solana within both the crypto community and traditional finance sectors. He noted that many investors view Solana as an alternative, particularly those who missed out on the Ethereum boom.

However, not all experts share McCann's optimism regarding Solana. James Seyffart, a research analyst at Bloomberg Intelligence, conceded that SOL would see the “most demand,” but suggested that Dogecoin or Litecoin may be more likely to get an ETF approved first.

“Those lawsuits against COIN and Kraken and others flat out say ‘Solana is a security’ lol. Which could very easily make this a very rocky road,” Seyffart tweeted. (The SEC named SOL as a security in its lawsuits against Coinbase, Kraken, and Binance.US.)

Highlighting the significance of a regulated futures market, which is a key consideration for the U.S. Securities and Exchange Commission (SEC) when approving ETFs, Seyffart stated, “I don’t think Solana is coming anytime soon. Dogecoin or Litecoin, possibly even earlier.” He explained that the SEC looks for a liquid and regulated futures market, a criterion that Dogecoin and Litecoin may meet before Solana.

The role of futures markets in this discussion is crucial. The Commodity Futures Trading Commission (CFTC) regulates the futures markets for Bitcoin and Ethereum, which helped pave the way for their ETFs. Until a similar market exists for Solana, its chances of approval remain uncertain.

Alex Kruger, founder of Asgard, suggested that both Solana and Dogecoin have potential, depending on the development of their futures contracts, although he acknowledged that he doesn’t “have a strong view.”

Moreover, Seyffart noted that the legal status of XRP also comes into play. If XRP is not classified as a security in the ongoing lawsuit, it could open the door for its ETF, assuming there is a regulated market for it.