Which Crypto Assets ETF will be next?

A recent vote shows that 63.6% of participants believe that SOL may become the next ETF hot token after Bitcoin and Ethereum.

After the approval of the Ethereum ETF, the market indeed has high hopes for SOL. Several industry insiders have expressed positive views on this.

• The foreign exchange and digital assets research director of a certain bank expects that the approval of Crypto Assets ETFs such as SOL and XRP may come in 2025.
• The founder of a certain capital company stated that they will prepare for the SOL ETF.
• The CEO of an investment company stated on a television program that Solana could be the next Crypto Assets ETF.

The main reason SOL is favored is its high market capitalization. From this dimension, SOL indeed has a greater possibility among mainstream Crypto Assets.

However, the biggest problem faced by SOL is its regulatory positioning. In June 2023, the SEC listed SOL as a security in lawsuits against certain trading platforms. This qualification makes it difficult for the SOL ETF to be approved in the short term, as crypto assets identified as securities must meet stricter regulatory requirements.

However, the recently passed FIT21 bill has brought new hope to the industry. The bill clarifies the classification of digital currencies and their regulatory bodies:

• Decentralized tokens are defined as digital commodities, regulated by the CFTC.
• Non-decentralized tokens are defined as securities and are regulated by the SEC.

The bill also set standards for decentralization, paving the way for the launch of more ETFs.

Overall, although SOL is currently classified as a security, the regulatory environment is constantly changing. SOL still has the potential to become one of the approved ETF targets in the future, with the specific timing depending on the progress of the FIT21 bill and the implementation of relevant definitions.