Nate Geraci, President of ETF Store, has projected that an exchange-traded fund (ETF) combining spot Bitcoin (BTC), Ethereum (ETH), and Solana (SOL) could be on the horizon. Geraci’s track record for predicting trends in the crypto ETF sphere lends significant weight to his forecast.
This move could diversify how investors engage with crypto merging traditional investment mechanisms with the field of digital assets. Consequently, this indicates a potential expansion in the variety of crypto investment products available to investors.
Geraci suggested that issuers might soon file for a combined spot BTC, ETH, and SOL ETF.
“We’re quickly heading down a path towards index-based and actively managed crypto ETFs,” Geraci said.
Read more: Solana ETF Explained: What It Is and How It Works
Despite Geraci’s optimism, not everyone shares his confidence. Skeptics point to regulatory hurdles, especially concerning Solana.
“Solana was already targeted by enforcement actions for being an unregistered security. No way in hell will the SEC approve a spot ETF of any sort for it before it plays out in the courts for a couple of years,” an X user commented.
However, the SEC has already approved individual spot ETFs for Bitcoin and Ethereum, marking a progressive step toward broader acceptance of crypto in formal investment vehicles. Experts have predicted that the spot Ethereum ETFs could start trading from tomorrow.
These developments could pave the way for more complex ETF structures, including those proposed for Solana.
Furthermore, the Chicago Board Options Exchange (CBOE) recently initiated a significant step by filing form 19b-4s for Solana ETFs. This form invites public commentary and is a critical phase in the SEC’s evaluative process, mirroring the steps previously taken for Bitcoin and Ethereum ETFs.
Industry leaders, including Matthew Sigel from VanEck’s digital asset research team, have noted that while a CME futures market is not imperative for crypto-ETF approval, widespread regulatory acceptance might hinge on such developments or a shift in SEC leadership.
Political shifts could influence regulatory approaches. With President Joe Biden not seeking re-election, the political climate is ripe for change. Potential leadership changes at the SEC, particularly if Donald Trump, who has expressed support for the crypto sector, reclaims the presidency, could further impact regulatory attitudes towards cryptocurrencies.
Read more: Ethereum ETF Explained: What It Is and How It Works
Speculation about future SEC appointments under a new administration is rampant. Figures like Dan Gallagher, currently Chief Legal Officer at Robinhood and former SEC Commissioner, are being considered as possible successors to the current SEC Chair, Gary Gensler. Such changes could significantly affect the approval prospects for financial products like combined crypto ETFs.