- Brian Kelly, a notable crypto investor and CNBC’s ‘Fast Money’ trader, recently suggested that Solana (SOL) could be the next cryptocurrency to get a spot exchange-traded fund (ETF) in the United States.
- Kelly’s prediction has ignited a lively debate among industry experts and market observers.
- “You’ve got to think about Solana as probably the next one. Bitcoin, Ethereum, and Solana are probably the big three for this cycle,” Kelly remarked.
Brian Kelly’s prediction on Solana’s potential ETF sparks debate among crypto experts.
Brian Kelly’s Bold Prediction
On May 22, 2024, Brian Kelly, a well-known figure in the cryptocurrency space, suggested that Solana (SOL) might be the next cryptocurrency to be featured in a spot ETF in the United States. Kelly, who is the founder and CEO of BKCM LLC, an investment firm focused on digital currencies, made this prediction during CNBC’s post-market talk show, Fast Money. His statement has since sparked a lively debate among industry experts and market observers.
Industry Reactions
Not everyone shares Kelly’s optimism. Nate Geraci, president of The ETF Store, countered that a spot Solana ETF is unlikely unless there is a Solana futures product listed on the Chicago Mercantile Exchange or a robust cryptocurrency regulatory framework is established by Congress. James Seyffart, a Bloomberg ETF analyst, echoed Geraci’s caution. Seyffart suggested that a spot Solana ETF would require a Commodity Futures Trading Commission (CFTC)-regulated market, which he believes could happen within a few years. He noted that such an ETF could see significant demand, second only to Bitcoin and Ether. However, he also pointed out that the Securities and Exchange Commission (SEC) has previously classified Solana as a security in lawsuits against Coinbase and Kraken, potentially complicating future applications.
Alternative Perspectives
Contrary to Kelly’s and Seyffart’s views, Adam Cochran, partner at Cinneamhain Ventures, argued that either Litecoin (LTC) or Dogecoin (DOGE) would be more likely candidates for the next spot ETF. Cochran believes that these cryptocurrencies have a cleaner path and lower demand, making them more suitable for a spot ETF.
Market Performance
At the time of writing, SOL is trading at around $177.31, down 1.6% in the past 24-hour period. However, in the year-to-date period, SOL is up 70% vs USD. This performance indicates a strong interest in Solana, which could potentially support Kelly’s prediction if regulatory hurdles are overcome.
Conclusion
Brian Kelly’s prediction about Solana potentially being the next cryptocurrency to get a spot ETF has certainly stirred the pot in the crypto community. While some experts like Nate Geraci and James Seyffart express caution due to regulatory challenges, others like Adam Cochran suggest alternative cryptocurrencies might be more likely candidates. Regardless of the differing opinions, the discussion highlights the growing interest and evolving landscape of cryptocurrency ETFs. As the market continues to develop, it will be interesting to see how these predictions play out and what impact they will have on the broader financial ecosystem.
