Bloomberg’s senior analyst, Eric Balchunas, predicts a surge in the popularity of crypto exchange-traded funds (ETFs) following the introduction of Ethereum ETFs. Indeed, Balchunas believes a Solana ETF could be the next to hit the crypto market following.
Solana ETF in the Spotlight
The SEC has extended its decision on the Ethereum ETF trading approval from July 18, 2024, to July 23, 2024. This delay has sparked further discussions within the crypto community.
Balchunas shared his thoughts on X. He emphasized that the approval of an Ethereum ETF could pave the way for other crypto ETFs, with Solana potentially being next in line. He believes Solana’s ETF will likely follow Ethereum’s approval due to its high-speed transactions and scalability, similar to Bitcoin and Ether.
“After the launch of Ether ETFs, there will be additional flows and more Ethereum products, then Solana, and it’s probably never going to end. The dam has broken,” Balchunas stated.
It is worth noting that VanEck filed for the Solana ETF on June 27, submitting an S-1 registration statement as the first investment manager to do so. The firm remains focused on this asset, advocating for its classification as a commodity.
In an interview with Tony Edward of Thinking Crypto, Matthew Sigel, the head of Digital Assets Research at VanEck, discussed the potential of Solana. He expressed optimism, comparing Solana to Ethereum regarding decentralization and blockchain characteristics.
“We concluded that Ethereum and Solana, at this point, are fundamentally the same. No single entity controls more than 20% of Solana, nor can they halt the chain unilaterally. Solana is a utility commodity that gives access to the second largest open-source App Store,” Sigel said.
Given the enthusiasm around Solana, data from CoinGecko reveals it is currently experiencing a bullish momentum. The asset is trading at $161, with a 10.94% increase since Monday’s opening.
Source: Be(in)Crypto
