A spot ETH ETF in the US might make room for SOL to be categorized as a commodity according to a recent Bernstein report. Distinguishing between cryptocurrencies as securities or commodities is very crucial. 

SEC & Ethereum ETF Approval 

• This way, by being a commodity, it can be included in ETF applications as well as come under scrutiny from the Securities and Exchange Commission because if deemed otherwise, the strict SEC rules will apply to it.

• If the Securities and Exchange Commission (SEC) approves the exchange-traded funds of unrelated Ethereum (ETH), they would have treated the second most significant cryptographic money as a commodity, a move that sets a critical example. For the first time, since non-Bitcoin virtual assets would fall into this category, people can expect that Solana may be next.

• Earlier this week, Ether’s price rose after Bloomberg’s analysts had upped the chances from 25% to 75% in which the SEC would grant spot Ether ETFs approval after it was reported that regulatory body had asked for updates on filings. The applications would, however, be decided by the SEC today, on May 23, after several postponements.

Investors POV on Solana ETF –

Recently, Brian Kelly, a crypto investor, said something similar to this in an interview on CNBC when asked if he is optimistic about the possibility of Ethereum backed ETF products being approved by regulators. Solana’s SOL was mentioned as possibly being the next in line for approval by the Securities and Exchange Commission in terms of altcoins. Investment managers may be looking at it in terms of how it can benefit them.

However, Kelly also noted that both the inclusion of Solana’s initial coin offering (ICO) among securities as well as the approval of Eth ETF could be problematic.

Ethereum ETF Approval & The Politics

After releasing the final verdicts that would determine the fate of Ethereum etf approval applications, the Bernstein report also pointed out that recent happenings could indicate a change in the way the Biden administration views digital money as per a release ahead of SEC.

The report says that, if Trump wins the election, it will mean that the current government will continue to support the crypto industry through the enactment of laws and policies.

According to the Bernstein report:

“Should Trump get elected, crypto could see significant legislative and agency support, leading to long-lasting structural changes in crypto financial integration.”

Will Solana Get An ETF?

Solana ETFs might get approved soon as the rules change and those that favor cryptocurrency increase from both sides of the aisle. What we can deduce from the recent approval of The Financial Innovation and Technology for the 21st Century (FIT21) Act is a change in direction in politics, with Democrats obviously supporting it hugely

Attorney Jake Chervinsky described the bill’s approval as a vote of no-confidence in the current SEC’s crypto regulation strategy proposing political implications for maintaining an anti-cryptocurrency position. 

Eager to know what will happen in the future of the Solana ETF and Ethereum ETF approval?

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Disclaimer: This post is intended solely for informational purposes and should not be taken as legal, tax, investment, financial, or any other form of advice. Although all the information provided is true to the best of our knowledge, it is advisable to research well before making any kind of investments or decisions in general. The team of ReadingCrypto bears no responsibility in the event of any adverse outcomes.