Brian Kelly Elevates Solana (SOL) to "Big Three" Status, Hints a Spot ETF Might Be on the Horizon

The cryptocurrency community is abuzz with speculation after CNBC's 'Fast Money' trader and noted crypto investor Brian Kelly hinted that a Solana (SOL) spot exchange-traded fund (ETF) might be on the horizon in the United States.

CNBC's 'Fast Money' trader and renowned crypto investor Brian Kelly has hinted at the possibility of a Solana (SOL) spot exchange-traded fund (ETF) on the horizon in the United States, sparking a discussion among industry experts and investors.

During an appearance on CNBC's post-market show 'Fast Money' on May 22, Kelly discussed the future of cryptocurrency ETFs, highlighting Solana's role as part of the "big three" in this cycle, alongside Bitcoin and Ethereum. This statement comes as the Securities and Exchange Commission (SEC) prepares to make a decision on an Ether (ETH) spot ETF.

"The trade now is, who's next," Kelly suggested to viewers, adding that "Solana is probably the next one" being considered for an ETF.

Kelly's comments have ignited a debate among industry experts. While some believe that a spot Solana ETF is feasible, others are more skeptical, given the absence of a Chicago Mercantile Exchange-traded Solana futures product or a clear regulatory framework from Congress. Currently, only Bitcoin and Ether futures have obtained approval in the U.S.

Nate Geraci, president of The ETF Store, argues that a spot Solana ETF is unlikely without prior establishment of such a futures product or direct involvement of Congress in the matter.

James Seyffart, an ETF analyst from Bloomberg, also expresses skepticism, estimating that such a development might be a few years away. He points out that while a spot Solana ETF would likely attract substantial interest, regulatory challenges could arise, especially since SEC Chair Gary Gensler has previously designated Solana as a security in legal actions against platforms like Coinbase and Kraken.

However, others believe that coins like Litecoin (LTC) or Dogecoin (DOGE) might be more viable candidates for the next spot ETF due to their "cleaner paths," despite potentially lower demand.

The discussion was further fueled by comments from the CEO of asset management giant Franklin Templeton, who recently praised Solana's potential. This has led to speculation that Franklin Templeton might consider filing for a Solana ETF, especially given the firm's positive stance on blockchain technology's role in the future of ETFs and mutual funds.

Matt Hougan, chief investment officer at Bitwise, has also highlighted Solana’s promise, labeling it as the "crypto asset of 2024" and exploring its practical applications for institutional use.

As the crypto industry continues to expand, the concept of a Solana ETF is just one of many potential developments that could shape the market. With varying opinions and ongoing regulatory oversight, the path forward for Solana and other cryptocurrencies in the ETF space remains complex but intriguing.