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CNBC Fast Money Trader Predicts Solana ETF Next, Ignites Industry Debate

Brian Kelly predicts Solana ETF, sparking industry debate.

Brian Kelly, a CNBC contributor and cryptocurrency investor, stated that Solana is one of the "big three" coins, implying that it will be the next to gain ETF treatment.

Brian Kelly Predicts Solana Could Be the Next US Spot ETF

Brian Kelly, a crypto investor and CNBC 'Fast Money' trader, stirred a conversation on Crypto X on Wednesday by saying that Solana (SOL) could be the next cryptocurrency to obtain a spot exchange-traded fund (ETF) in the US, as per Cointelegraph.

Kelly made the prediction on CNBC's post-market discussion show Fast Money on May 22, one day before the Securities and Exchange Commission is set to rule on at least one proposed spot Ether (ETH) ETF.

“The trade now is, who’s next,” asked Kelly, the founder and CEO of the BKCM Digital Asset Fund:

“You’ve got to think about Solana as probably the next one. Bitcoin, Ethereum and Solana are probably the big three for this cycle.”

Some industry observers disagreed with Kelly's prediction.

Solana's Spot ETF Prospects Hinge on Regulatory Developments and Market Demand

Nate Geraci, president of The ETF Store, feels that a spot Solana ETF will not exist until a Chicago Mercantile Exchange-traded Solana futures product is listed or Congress establishes a real cryptocurrency regulatory framework.

Thus far, only Bitcoin (BTC) and Ether (ETH) futures have been allowed in the United States.

Bloomberg ETF analyst James Seyffart agreed with Geraci, stating that such a scenario would occur "within a few years" of the market being regulated by the Commodity Futures Trading Commission.

Seyffart believes a spot Solana ETF would be in higher demand than any other digital asset except Bitcoin and Ethereum.

However, Seyffart also mentioned that Gary Gensler and the SEC had identified Solana as security in past Coinbase and Kraken disputes, which might complicate matters for future applicants.

Cinneamhain Ventures partner Adam Cochran, on the other hand, feels that Litecoin (LTC) or Dogecoin (DOGE) will be the next coins to be included in a spot ETF.

“Much lower demand, but cleaner paths,” Cochran said. Both Litecoin and Dogecoin are powered by a proof-of-work consensus mechanism like Bitcoin.

Few ETF issuers have expressed interest in applying for a spot in Solana ETF.

However, trillion-dollar asset management firm Franklin Templeton recently complimented Solana and one of its founders, Anatoly Yakovenko, generating suspicion that the business may consider filing a spot Solana ETF application.

Matt Hougan, Bitwise's chief investment officer, anticipated that Solana would be the "crypto asset of 2024" and recently investigated real-world use cases for the network that institutions could access.

Photo: Microsoft Bing

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