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Brian Kelly, a crypto investor and trader, believes that Solana (SOL) has the potential to become the next cryptocurrency to have a spot exchange-traded fund (ETF) in the United States. He mentioned on CNBC’s ‘Fast Money’ that Solana could be the next big player alongside Bitcoin and Ethereum. However, not everyone shares his optimism, with some experts suggesting that a spot Solana ETF may not materialize until certain regulatory milestones are met, such as the approval from the Commodity Futures Trading Commission (CFTC).

Despite differing opinions, there is potential demand for a spot Solana ETF that could surpass other digital assets outside of Bitcoin and Ethereum. However, regulatory hurdles remain significant, especially with the SEC’s classification of Solana as a security in lawsuits against Coinbase and Kraken. This adds complexity to the path for potential ETF applicants, potentially creating a rocky road for Solana in the ETF race. Some experts believe that other cryptocurrencies like Litecoin or Dogecoin might beat Solana to the ETF race due to perceived cleaner regulatory pathways.

While few ETF issuers have openly discussed the possibility of a spot Solana ETF, speculation has arisen around trillion-dollar asset management firm Franklin Templeton’s potential interest in launching a Solana ETF in the future. Meanwhile, Fidelity made an amended S-1 application with the SEC for its spot Ether ETF, specifying that the underlying Ether tokens will not be staked. This move has led to increased speculation about the approval of spot Ether ETFs and has provided a boost to spot Bitcoin ETFs, with BlackRock’s iShares Bitcoin Trust (IBIT) witnessing a substantial inflow of $290 million on May 21.

The approval of a spot Solana ETF faces challenges due to regulatory complexities and conflicting opinions within the industry. While Brian Kelly believes in Solana’s potential alongside Bitcoin and Ethereum, other experts express skepticism about the timeline for a spot Solana ETF to materialize. With the SEC’s previous classification of Solana as a security and the need for regulatory clarity beyond Bitcoin and Ethereum, the path for Solana in the ETF race remains uncertain. However, the potential demand for a spot Solana ETF suggests that it could become a significant player in the cryptocurrency space if regulatory hurdles are overcome in the future.

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