Cboe Exchange Executives Solana ETF Unlikely to Appear in the Short Term

06/12/2024

According to a report from CryptoSlate, Rob Marrocco, the Vice President responsible for ETF listings at the exchange Cboe, which has multiple Bitcoin spot ETFs listed, believes that without establishing a futures market or changing regulatory conditions, it is not possible to have a crypto ETF other than Bitcoin and Ethereum.

Without futures, there will be no spot ETF
Legislation is another route
Marrocco stated on the ETF Store Podcast on June 11 that the market’s expectations for Solana (SOL) and XRP spot ETFs are unlikely to materialize in the short term!
These cryptocurrencies do not have a futures market, and the futures market is the main reason why spot Bitcoin ETFs have been approved.
This means that the only feasible way to bring a Solana ETF to market is through a Solana futures ETF first, and then there may be a chance for a spot ETF. However, even if Solana futures ETFs are launched, they will need to trade for a considerable amount of time to establish a track record to prove that the market is large and transparent enough, a process that could take a considerable amount of time.

Marrocco believes that another way is to establish a comprehensive cryptocurrency regulatory framework. This framework will define the composition of securities and commodities, enabling the U.S. Securities and Exchange Commission (SEC) to take appropriate actions.

This will require legislative action, which may take a similarly long or longer time, but with cryptocurrencies becoming an increasingly important issue for U.S. voters in election years, it also seems like a viable 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, will 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 JPMorgan and Bloomberg expressing doubts, while Bernstein believes that the approval of an Ethereum ETF will pave the way for similar tokens like Solana to obtain commodity classification.

Cboe Solana ETF

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Investing Markets

Cboe Exchange Executives Solana ETF Unlikely to Appear in the Short Term

06/12/2024

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.

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