The US SEC (Securities and Exchange Commission) approved two types of cryptocurrency ETFS (Exchange Traded Funds) this year. The financial watchdog approved spot Bitcoin (BTC) ETFs in January and spot Ethereum (ETH) ETFs earlier this month. The development has opened the discussion about which crypto will receive an ETF next: Solana (SOL), Ripple's XRP or something else.
Also read: SEC Approves All Spot Ethereum ETFs
Speaking to CNBC, BKCM founder Brian Kelly said Solana (SOL) could be the next cryptocurrency to receive ETF approval. Kelly called Bitcoin, Ethereum and Solana the big three of this cycle.
Also read: Solana: Anthony Scaramucci predicts the next SOL ETF
Bloomberg analyst James Seyffart agreed with Kelly. Seyffart believes there will be more demand for a SOL ETF than for other digital assets aside from BTC and ETH. Seyffart said the Financial Innovation and Technology for the 21st Century (FIT21) bill will accelerate the launch of a SOL ETF. Additionally, Seyffart believes a SOL ETF will debut after a few years of a CFTC-regulated futures market.
Solana ETF Debuts Before XRP ETF?
According to Seyffart, Ripple's ongoing lawsuit with the SEC is a barrier to an XRP ETF this year. Nevertheless, Ripple CEO Brad Garlinghouse is confident the SEC will approve an XRP ETF. Garlinghouse emphasizes that XRP and BTC are the only cryptocurrencies with clear regulations.
Also Read: Ripple CEO Hints About Spot XRP ETF
According to Geoffrey Kendrick, head of crypto research and emerging markets foreign exchange at Standard Chartered, it is only a matter of time before the SEC approves other crypto ETFs. According to Kendrick, Solana (SOL) and XRP are among the top choices that may receive ETF approval from the authorities. Kendrick also notes that the SEC is unlikely to consider cryptocurrencies similar to ETH, such as XRP, as securities due to their core technological similarities.