Solana Memecoins Suffer 15% Outflows as Wider Market Falls

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Calls for Spot Solana ETF Grow After Ethereum Developments, Bitcoin Maxis Oppose – Crypto News

Published

11 months ago

May 23, 2024

Dripp

Amid the strong and growing optimism surrounding the approval of the spot Ethereum ETF, the ball has started rolling demanding similar products for other altcoins like Solana. Market analysts have been stating that the approval of the spot Ethereum ETF can lead to a snowball effect.

Chorus for Spot Solana ETF Grows

In a recent appearance on CNBC, BKCM CEO Brian Kelly suggested that Solana (SOL) could potentially become the next cryptocurrency exchange-traded fund (ETF). This speculation aligns with prior rumors in Hong Kong hinting at the issuer’s preparation for a SOL ETF.

CNBC Guest believes $Sol will have the Next Spot ETF 🤯 pic.twitter.com/M79fSC6uJy

— Joshua Jake (@itzjoshuajake) May 22, 2024

However, SOL faces unique challenges, as it currently lacks a futures ETF and has been classified as a security by the U.S. Securities and Exchange Commission (SEC), adding further complexity to its ETF prospects. Notably, a prominent ETF issuer has expressed disinterest in launching ETFs beyond Bitcoin (BTC) and Ethereum (ETH) at this time.

According to analysis from Bloomberg’s James Seyffart, the approval of a futures ETF by the Commodity Futures Trading Commission (CFTC) could pave the way for the potential approval of a Solana (SOL) SPOT ETF in the coming years, with the FIT21 Crypto Bill potentially expediting this process.

However, hurdles remain as the U.S. Securities and Exchange Commission (SEC) has explicitly classified Solana as a security, posing significant challenges for its ETF journey. Seyffart also noted a lack of demand for Litecoin (LTC) and Dogecoin (DOGE) ETFs.

But SEC isn’t dancing around SOL’s status like they have ETH. 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

— James Seyffart (@JSeyff) May 22, 2024

Bitwise Investment CEO Hunter Horsley stated that there’s no need to have separate ETFs for other altcoins. He said that Bitwise’s 10 Crypto Index Fund already provides investors exposure to Bitcoin, Ethereum, Solana, and the top seven other altcoins.

Bitcoin Maxis Oppose This Development

Bitcoin maximalist “The Bitcoin Therapist,” raised concerns regarding the potential introduction of a Solana ETF, as reported by CNBC.

He argues that the inclusion of Ethereum (ETH) in the spot ETF sphere has triggered a domino effect, unleashing a flood of lesser-known cryptocurrencies, disparagingly referred to as “shitcoins.”

The Bitcoin Therapist remains resolute in his commitment to Bitcoin.

CNBC is already talking about a Solana ETF.

This is the problem with including ETH into the spot ETF game. They’ve opened Pandora’s box of shitcoins.

Looks like we’re about to have the free market casino everyone’s begged for.

I’ll stick to #Bitcoin pic.twitter.com/e2FOQaxtgc

— The ₿itcoin Therapist (@TheBTCTherapist) May 22, 2024