Bloomberg Analyst Says Solana ETFs Will See More Demand Than Other Crypto Assets

Bloomberg research analyst James Seyffart thinks crypto investors would be more interested in a Solana exchange-traded fund (ETF) than in the funds of other cryptocurrencies, except bitcoin (BTC) and ether (ETH).

According to a tweet, Seyffart predicted that the United States Securities and Exchange Commission (SEC) may take some time to approve a Solana ETF; however, when that eventually happens, the fund will witness higher demands than similar products for other altcoins.

Seyffart explained that the SEC will likely greenlight Solana ETFs within a few years after the crypto community sees a SOL futures market regulated by the Commodity Futures Trading Commission (CFTC). 

SOL ETFs to Surpass Altcoins in Demand

Notably, crypto market structure bills like the Financial Innovation and Technology for the 21st Century Act (FIT21), which recently received almost unanimous support from Republicans and Democrats in the U.S. House of Representatives, could quicken the approval of the Solana ETFs.

Responding to remarks about his opinion, the Bloomberg analyst added that the SEC is not “dancing around” SOL’s status like it did with ETH being a commodity or not. In several lawsuits against American crypto exchanges, the agency stated that the Solana native token is a security; hence, the road to a SOL ETF will be “very rocky.”

Interestingly, some crypto community members believe the SEC may approve ETFs for Litecoin and Dogecoin before Solana because they have no regulatory baggage. While Seyffart saw the light in the view, he pointed out that demand for the products is not much, and issuers may not be willing to spend substantial funds on such ETFs.

Unchained Podcast host Laura Shin said: “I think the arguments on both sides are plausible: LTC and DOGE because there’s little regulatory baggage, but it doesn’t ‘make sense’ if you look it without the regulatory drama. SOL ‘makes sense’ from a crypto usage/fundamentals (dare I say ‘first principles’) perspective.”

Ethereum ETFs on The Horizon

Seyffart’s remarks on Solana ETFs come as the crypto community anticipates the SEC’s decision on several pending proposals for Ethereum ETFs. They were also a response to speculations that Solana ETFs would be the next in line after the securities agency greenlights Ethereum ETFs.

At the time of writing, the SEC was in discussions with potential Ethereum ETF issuers concerning the details of their proposal filings. The agency faces a May 23 deadline to approve or deny an application for the VanEck spot Ethereum ETF.