Eyes focus on Solana after approval of Ethereum ETFs

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By TP

With the approval in the United States of spot ETFs for ether (ETH), the native cryptocurrency of the Ethereum network, several analysts see the way open for the emergence of exchange-traded products for other cryptocurrencies. Such is the prediction of Bernstein, a financial advisory firm whose analysts believe that the Solana cryptocurrency (SOL) will be the next to have a cash ETF. «The approval of the Ethereum ETF paves the way for a first blockchain asset other than bitcoin (BTC) to be considered a commodity, raising hopes for cryptocurrencies similar to Ethereum (probably Solana) to follow the same route,» wrote analysts Gautam Chhugani and Mahika Sapra. Bernstein's idea was supported by CNBC's «Fast Money» trader Brian Kelly, who also raised the possibility that SOL be the next cryptocurrency to get an ETF in United States. «You have to think of solana as the next one. Bitcoin, Ethereum and Solana are probably the big three for this cycle,” Kelly added. In this sense, the precedent set with the approval of the Ethereum ETF by the Securities and Exchange Commission (SEC) is highlighted. This, taking into account that it is the first asset not related to the bitcoin blockchain to be classified as merchandise, even being in the debate on securities that the SEC has carried out in recent years. As reported by BitcoinDynamic, the president of the SEC, Gary Gensler, has made his opinion public many times, pointing out that, in his opinion, the majority of crypto assets (except BTC) are securities, a situation that would place them under supervision and control of the organism. In that sense, his opinion on ETH has, until now, been ambiguous. With this allegation, the SEC has filed several lawsuits against cryptocurrency exchanges, accusing them of trading securities without authorization. Solana was one of the crypto assets that was included in this classification being cited in the Commission's lawsuit against Binance filed in 2023. At the time, the SEC filed a lengthy document attempting to prove that the SOL altcoin is a security, arguing, above all, that it was launched through an initial coin offering (ICO). An approach that was refuted by the Solana Foundation, rejecting the SEC's position. So far the court has not ruled on this lawsuit, which is still ongoing and a ruling is expected. However, although SOL's situation is likely to undergo a deeper review in light of the launch of Ethereum ETFs, it is not entirely foreseeable what will happen to the lawsuit and the implications that the judges' decision may have. have in the cryptocurrency situation. In this regard, analysts also highlight the fact that the approval of ETH exchange-traded funds is made within the framework of a change in position by the Joe Biden administration, whose government is has been showing a little more openness towards the cryptocurrency ecosystem in recent weeks. An attitude that could continue to soften in the coming months. The change occurs in a political context marked by current expectations regarding the presidential elections that will be held next November. It is thus expected that, during the presidential campaign, proposals related to cryptocurrencies play an important role for voters, as the surveys indicate. In this way, the current political situation in the US is significantly influencing the policies around bitcoin, since now even former president and presidential candidate Donald Trump expresses favorable opinions towards the ecosystem. At this point, Bernstein considers that, if Trump is elected, Cryptocurrencies could receive significant support from both legislators as well as government agencies (with a new president of the SEC). Something that could mark the beginning of lasting changes in the integration of the sector into the financial system.