The Path of SOL ETF is Full of Challenges: Bloomberg Analyst Reveals Multiple SEC Lawsuits Naming SOL as a Security

CNBC discussed the possibility of a SOL ETF on its program on the 23rd, but Bloomberg analysts are not optimistic about it.

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Optimism for Ethereum Spot ETF
Will SOL be the next Spot ETF?
Bloomberg analysts are skeptical of SOL

The probability of approval for the Ethereum Spot ETF saw a reversal on the 21st, with reports that the SEC is requesting exchanges to expedite the submission of the ETF 19b-4 documents. Bloomberg analysts have also increased the likelihood of the approval of the Ethereum Spot ETF on May 23rd to 75%, leading to an 18% surge in ETH.

Various ETF issuers have also revised their documents (such as removing the pledge process), and while some sectors are optimistic that the SEC will at least approve specific Ethereum ETFs, the market has begun discussing which cryptocurrency spot ETF will be next.

Will SOL be the next Spot ETF?

CNBC trading commentator Brian Kelly earlier expressed optimism on the program that SOL will be the next cryptocurrency to become a spot ETF. He pointed out that this is not an “Sell the News” event for ETH, as ETH has not been performing well for a long time. Whether the Ethereum ETF is approved or not on May 23rd is also not the focus. He believes that the correct trade is to find the next cryptocurrency asset for ETF, which is likely to be SOL. BTC, ETH, and SOL are the “three giants” he believes in this bull market cycle. He also believes that cryptocurrency ETFs will benefit Coinbase and Robinhood, which aligns with the views of Beam CFO Snow.

Bloomberg analyst James Seyffart, however, is not as optimistic about the SOL ETF. First, based on precedent, it is possible that the SOL spot ETF may be launched under the supervision of the CFTC and may not happen until several years after the launch of the futures ETF. Second, the SEC’s attitude towards ETH and SOL is different. In the lawsuits against COIN and Kraken, the SEC indicated that Solana is a security.

James Seyffart believes that the path to a SOL ETF will be challenging, but the FIT21 bill may accelerate the process. In addition, the SOL ETF may be the most in-demand cryptocurrency asset apart from BTC and ETH.

ETH
SOL

Further reading
Will Ethereum Spot ETF Approval Classify More Competing Coins as Commodities Instead of Securities?
Bybit Director of Financial Products Hao Yang: The market largely underestimates the potential of Ethereum (ETH), which is not in direct opposition to SOL.

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