Solana (SOL) Will Probably Be the Next Crypto ETF Product After ETH, Brian Kelly Says

The majority of the Crypto proponents claimed that Solana will be the next Crypto ETF product, following the approval of ETH spot ETF applications.

Solana (CRYPTO: SOL) might be in line to become the next cryptocurrency to get an exchange-traded fund in the U.S., according to some crypto observers.

The speculation comes as the Securities and Exchange Commission is expected to rule on several applications for Ethereum (CRYPTO: ETH) spot ETFs in the coming weeks. Currently, only Bitcoin (CRYPTO: BTC) spot ETFs are available in the U.S.

On Monday, CNBC’s ‘Fast Money’ traders discussed the possibility of a Solana ETF during a conversation about the SEC and ETH spot ETF applications.

“You’ve got to think about Solana as probably the next one. Bitcoin, Ethereum and Solana are probably the big three for this cycle,” said Fast Money trader and crypto investor Brian Kelly.

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Solana is currently the ninth-largest cryptocurrency by market capitalization.

“I think it's interesting. I think it will take a long time to get there, but I think it's possible,” said James Seyffart, an ETF analyst at Bloomberg.

“Based on current precedent/needs — Will happen within a few years of getting a CFTC regulated futures market. But congress & Market structure bills like FIT21 could make it happen quicker. I think a SOL ETF would see most demand vs other digital assets (aside from BTC & ETH).”

Solana's status as a security in the eyes of the SEC — a designation that has been reinforced by the SEC's legal actions against several major crypto firms in the U.S. — could also complicate the conversation about an ETF.

“Solana's legal status is murky. The SEC has broad authority over digital assets and has already sued several American crypto companies over their practices,” Seyffart said.

“The CFTC has jurisdiction over futures markets and derivatives, which are used by ETF issuers to create products that track the performance of an underlying asset without actually holding the asset itself. This legal gray area could complicate efforts to launch ETFs for cryptocurrencies like Solana.”

However, Cinneamhain Ventures partner Adam Cochran thinks another cryptocurrency will be next in line for an ETF.

“I think you get LTC and DOGE first. Much lower demand, but cleaner paths,” Cochran said.