{"id":421069,"date":"2024-05-23T20:01:33","date_gmt":"2024-05-23T19:01:33","guid":{"rendered":"https:\/\/cryptoslate.com\/?p=421069"},"modified":"2024-05-24T00:26:29","modified_gmt":"2024-05-23T23:26:29","slug":"ethereum-etf-approval-will-set-stage-for-solana-etf-commodity-classification","status":"publish","type":"post","link":"https:\/\/cryptoslate.com\/ethereum-etf-approval-will-set-stage-for-solana-etf-commodity-classification\/","title":{"rendered":"Ethereum ETF approval will set stage for Solana ETF, commodity classification"},"content":{"rendered":"<p>According to a recent Bernstein report, the approval of a spot <a href=\"https:\/\/cryptoslate.com\/coins\/ethereum\/\">Ethereum<\/a> (ETH) exchange-traded fund (ETF) in the US may establish a precedent for classifying <a href=\"https:\/\/cryptoslate.com\/coins\/solana\/\">Solana<\/a> (SOL) as a commodity.<\/p>\n<p>The classification of cryptocurrencies as either securities or commodities holds significant implications. Commodity classification facilitates ETF applications and approvals, while security classification subjects assets to stricter SEC oversight.<\/p>\n<h2>&#8216;Big three'<\/h2>\n<p>The approval of spot Ethereum ETFs would mean the SEC views the second-largest crypto as a commodity, setting a critical precedent. This would mark the first time a non-Bitcoin digital asset receives such a classification, raising expectations for Solana to follow suit.<\/p>\n<p>Ether's price increased earlier this week after Bloomberg analysts raised the likelihood of SEC approval for spot Ether ETFs to 75% from 25%, following reports that the regulator requested updates to filings. The SEC's final decisions on these applications are expected later today, on May 23, following multiple delays.<\/p>\n<p>Bernstein's report noted that <a href=\"https:\/\/cryptoslate.com\/coins\/bitcoin\/\">Bitcoin's<\/a> 75% rally following the approval of <a href=\"https:\/\/cryptoslate.com\/insights\/u-s-bitcoin-etfs-amass-2212-btc-in-a-day-led-by-blackrocks-ibit-and-fidelitys-fbtc\/\">spot ETFs<\/a> suggests similar price action for Ethereum after approval of spot ETFs.<\/p>\n<p>However, if the SEC rejects the applications, Ethereum could experience significant volatility and a steep price correction in the coming days, according to CryptoQuant research.<\/p>\n<p>Crypto investor Brian Kelly expressed similar optimistic views about Solana and the potential regulatory approval of Ethereum ETF products during a recent CNBC interview. He speculated that SOL could be the next altcoin to receive ETF approval, highlighting it as a likely candidate for investment managers to push forward.<\/p>\n<p>Kelly emphasized that Bitcoin, Ethereum, and Solana are the &#8220;big three&#8221; digital assets that might see ETF products approved in this cycle. He noted the success of Bitcoin ETFs, which have collectively amassed a significant amount of Bitcoin, valued at around $58 billion, indicating strong demand for regulated crypto investment products.<\/p>\n<p>However, Kelly also acknowledged some skepticism within the Solana community. He mentioned that Solana's initial coin offering (ICO) and its classification as a security by the SEC could pose challenges for ETF approval.<\/p>\n<p>Despite this, Kelly remained optimistic that the shifting regulatory and political landscape might increase the chances of Solana ETF approval if Ethereum ETFs receive the green light.<\/p>\n<h2>Shifting political landscape<\/h2>\n<p>The Bernstein report, released ahead of the SEC's final decisions on ETH ETF applications, also highlighted a potential shift in the Biden administration's stance on cryptocurrencies based on recent developments.<\/p>\n<p>Additionally, the report noted that if Trump is reelected, his adminitration is likely to further support the crypto industry through legislative and regulatory measures. According to the report:<\/p>\n<blockquote><p>&#8220;Should Trump get elected, crypto could see significant legislative and agency support, leading to long-lasting structural changes in crypto financial integration.&#8221;<\/p><\/blockquote>\n<p>The potential approval of Solana ETFs comes amid a changing regulatory environment and growing <a href=\"https:\/\/cryptoslate.com\/bipartisan-push-for-ethereum-etf-gains-momentum-in-congress\/\">bipartisan support<\/a> for crypto. The recent passage of the <a href=\"https:\/\/cryptoslate.com\/house-passes-fit21-crypto-bill-with-majority-bipartisan-support\/\">Financial Innovation and Technology for the 21st Century<\/a> (FIT21) Act by the House, with significant Democratic backing, indicates a potential political shift.<\/p>\n<p>Lawyer Jake Chervinsky described the bill's passage as a &#8220;vote of no confidence&#8221; in the SEC's current approach to crypto regulation, suggesting political consequences for maintaining an anti-crypto stance.<\/p>\n<p>Regulatory approval of Solana ETFs would mark a significant milestone for the crypto industry, signaling mainstream acceptance and integration. However, with Ether ETFs still awaiting approval, the industry remains cautiously optimistic about the future.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>According to a recent Bernstein report, the approval of a spot Ethereum (ETH) exchange-traded fund (ETF) in the US may establish a precedent for classifying Solana (SOL) as a commodity. The classification of cryptocurrencies as either securities or commodities holds significant implications. Commodity classification facilitates ETF applications and approvals, while security classification subjects assets to [&hellip;]<\/p>\n","protected":false},"author":1250,"featured_media":421155,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[120,78665,77968,11],"tags":[],"prediction_market_topic":[],"post_folder":[],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v21.9 (Yoast SEO v21.9.1) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Ethereum ETF approval will set stage for Solana ETF, commodity classification<\/title>\n<meta name=\"description\" content=\"Industry experts, including Bernstein, believe Ethereum securing spot ETF approval will pave the path for Solana ETFs.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/cryptoslate.com\/ethereum-etf-approval-will-set-stage-for-solana-etf-commodity-classification\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Ethereum ETF approval will set stage for Solana ETF, commodity classification\" \/>\n<meta property=\"og:description\" content=\"Industry experts, including Bernstein, believe Ethereum securing spot ETF approval will pave the path for Solana ETFs.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/cryptoslate.com\/ethereum-etf-approval-will-set-stage-for-solana-etf-commodity-classification\/\" \/>\n<meta property=\"og:site_name\" content=\"CryptoSlate\" \/>\n<meta property=\"article:published_time\" content=\"2024-05-23T19:01:33+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2024-05-23T23:26:29+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2024\/05\/solana-etf-1.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1200\" \/>\n\t<meta property=\"og:image:height\" content=\"630\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Assad Jafri\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@cryptoslate\" \/>\n<meta name=\"twitter:site\" content=\"@cryptoslate\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Assad Jafri\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"NewsArticle\",\"@id\":\"https:\/\/cryptoslate.com\/ethereum-etf-approval-will-set-stage-for-solana-etf-commodity-classification\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/cryptoslate.com\/ethereum-etf-approval-will-set-stage-for-solana-etf-commodity-classification\/\"},\"author\":{\"@type\":\"Person\",\"@id\":\"https:\/\/cryptoslate.com\/author\/assad-jafri\/#person\",\"name\":\"Assad Jafri\",\"url\":\"https:\/\/cryptoslate.com\/author\/assad-jafri\/\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/cryptoslate.com\/author\/assad-jafri\/\"},\"image\":{\"@type\":\"ImageObject\",\"@id\":\"https:\/\/cryptoslate.com\/author\/assad-jafri\/#authorimage\",\"url\":\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2022\/02\/cs-syed.jpg\",\"contentUrl\":\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2022\/02\/cs-syed.jpg\",\"caption\":\"Assad Jafri\"},\"jobTitle\":\"Editor & Reporter\",\"description\":\"AJ, a passionate journalist since Yemen's 2011 Arab Spring, has honed his skills worldwide for over a decade. 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