Cboe Exchange Executives Solana ETF Unlikely to Appear in the Short Term
According to a report by CryptoSlate, Rob Marrocco, the Vice President responsible for ETF listings at Cboe, a leading exchange with multiple Bitcoin spot ETFs, believes that without first establishing a futures market or changing regulatory conditions, it will not be possible to see crypto ETFs beyond Bitcoin and Ethereum.
Marrocco stated on the ETF Store Podcast on June 11 that market expectations for Solana (SOL) and XRP spot ETFs are unlikely to be realized in the short term. These cryptocurrencies do not have futures markets, and the futures market is a key reason for the approval of Bitcoin spot ETFs.
This means that the only feasible way to bring a Solana ETF to market is through a Solana futures ETF first, and then potentially a spot ETF. However, even with the introduction of a Solana futures ETF, they would need to trade for a significant period of time to establish a track record to prove that the market is large and transparent enough, which could take a considerable amount of time.
Marrocco believes that another approach would be to establish a comprehensive cryptocurrency regulatory framework. This framework would define the composition of securities and commodities, allowing the U.S. Securities and Exchange Commission (SEC) to take appropriate action.
This would require legislative action, which could take a similar or longer amount of time. However, with cryptocurrencies becoming an increasingly important issue for U.S. voters in election years, it seems like a possible option.
The House passed FIT21, the “21st Century Financial Innovation and Technology Act,” on May 22, which, if passed by the Senate and signed into law, would further clarify the regulatory responsibilities of the SEC and the Commodity Futures Trading Commission (CFTC) in the digital asset space and make regulatory principles clearer.
Experts have differing opinions on the issue of a Solana ETF, with skepticism from JPMorgan and Bloomberg, while Bernstein believes that the approval of an Ethereum ETF could pave the way for similar tokens like Solana to be classified as commodities.
