Approval of a spot Ethereum ETF by the U.S. securities regulator could pave the way for a similar fund for Solana, according to Bloomberg analyst James Seyffart.

Solana, the fifth-largest cryptocurrency by market value, might see its own spot exchange-traded fund (ETF) “within a few years” if the U.S. Securities and Exchange Commission (SEC) approves spot Ethereum ETFs, Seyffart indicated in a recent social media post.

Based on current needs, this development could occur within a few years of establishing a Commodity Futures Trading Commission (CFTC) regulated futures market. However, legislative measures like the Financial Innovation and Technology for the 21st Century Act (FIT21) might accelerate this process.

“I think a SOL ETF would see most demand vs other digital assets (aside from BTC & ETH)”

In a social media post on May 23, Seyffart highlighted the potential for a spot ETF for Solana (SOL) to launch soon, contingent on the CFTC establishing a regulated futures market. He noted that based on current precedent, the approval of a spot Solana ETF could happen within a few years.

The Bloomberg analyst also mentioned that legislative measures such as the FIT21 Act could speed up this process, emphasizing that a spot Solana ETF would likely attract significant demand, second only to Bitcoin (BTC) and Ethereum (ETH).

The FIT21 Act aims to establish a comprehensive regulatory framework for cryptocurrencies, providing clarity for their trading. However, SEC Chair Gary Gensler has publicly opposed the bill, arguing that FIT21 would create “new regulatory gaps and undermine decades of precedent regarding the oversight of investment contracts, putting investors and capital markets at immeasurable risk.”

The Biden administration has also expressed opposition to the bill, stating that FIT21 “in its current form lacks sufficient protections for consumers and investors who engage in certain digital asset transactions.”

The discussion around a Solana spot ETF comes amid market anticipation for the SEC to approve a spot Ethereum ETF. If approved, this would set a significant precedent, likely paving the way for other altcoin-focused ETFs, including Solana.

The SEC’s decision on the spot Ethereum ETF proposal from VanEck is expected on May 23.

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