Bloomberg exchange-traded fund (ETF) analyst James Seyffart believes a Solana ETF would see extra demand than related funds for different altcoins, besides ether (ETH).

Seyffart’s assertion was in response to a video through which CNBC Quick Cash dealer and crypto investor Brian Kelly said Solana ETFs had been subsequent in line following the approval of Ethereum ETFs by the US Securities and Trade Fee (SEC).

Solana ETF to See Heavy Demand

The possibilities of the SEC approving a spot Ethereum ETF within the close to time period went up this week, with a number of market specialists, together with Bloomberg analysts, growing the chances of such an incidence from 25% to 75%.

The crypto neighborhood is hyped and anticipating the SEC’s resolution on the VanEck spot Ethereum ETF proposal, which has a remaining deadline of Could 23. Even ETH caught the hype and has made exceptional strides this week, rallying 28% within the final seven days.

Whereas it stays to be seen when the SEC will approve the pending spot Ethereum ETF proposals, analysts have sparked a debate about which cryptocurrency is subsequent on the record of ETF issuances.

Seyffart mentioned a Solana ETF could possibly be launched inside a number of years of getting a futures market regulated by the Commodity Futures Buying and selling Fee (CFTC). Nonetheless, Congress and standalone crypto market construction payments just like the FIT21 may hasten the method.

“I believe a SOL ETF would see most demand vs different digital belongings (apart from BTC & ETH),” the Bloomberg analyst tweeted.

Situations for Solana ETFs

Moreover, Seyffart noted that the street to launching Solana ETFs could possibly be rocky as a result of the SEC is just not “dancing round” the standing of the community’s native token, SOL, because it did with ETH. A number of lawsuits towards distinguished exchanges like Coinbase, Binance, and Kraken have flat-out categorized SOL as a safety, which may harden the method of issuing the funds.

Seyffart’s feedback sparked totally different reactions from neighborhood members, with some concurring together with his stance.

Nate Geraci, president of The ETF Retailer, agreed with Seyffart, saying: “No sol ETF till both CME-traded sol futures exist or Congress places legit crypto regulatory framework in place. Crypto ETF spigot turned off for some time after spot eth ETF approval… IMO.”

In the meantime, different neighborhood members think Litecoin and Dogecoin, regardless of their decrease demand, have larger possibilities of getting ETFs earlier than Solana as a result of they’ve “cleaner paths” and no regulatory baggage.