CME has no intention of launching a Solana futures fund, dimming the near-term prospects for a Solana ETF.
There were rumors going around that the Chicago Mercantile Exchange (CME) would be considering the possibility of offering futures contracts for SOL.
There were also rumors that other significant financial organizations, like BlackRock, would be about to take actions that are comparable to those made by Solana-based exchange-traded funds.
In spite of this, a person who is familiar with the situation has stated that CME does not intend to provide Solana with a futures fund investment opportunity.
CME Puts Out SOL ETF Hopes
The disclosure has dimmed prospects for a Solana exchange-traded fund in the near future. Despite the speculation-generated hype, the CME Group has decided not to pursue a futures product based on cryptocurrency.
Considering the ongoing evaluations within the cryptocurrency derivatives market, this decision seems reasonable.
According to James Seyffart, an ETF analyst at Bloomberg, the regulatory environment in the United States may delay the introduction of a Solana exchange-traded fund (ETF) by many years.
It was brought to his attention that an exchange-traded fund (ETF) of this kind would necessitate the establishment of a futures market that is regulated by the Commodity Futures Trading Commission (CFTC), which may be accomplished by legislative actions such as the FIT21 bill.
Seyffart further pointed out that the current stance of the Securities and Exchange Commission (SEC) regarding Solana as a security only serves to add confusion.
On the other hand, the Securities and Exchange Commission has classified Solana as a security in the lawsuits filed against Coinbase and Kraken, unlike Ethereum, which it has not categorically declared to be a security.
Justin Bons Hints Reason Behind Solana Congestion
This classification significantly hinders the formation of an exchange-traded fund (ETF) based in Solana. At the same time, Justin Bons, who works for Cyber Capital, has expressed his viewpoint on the operational issues that cryptocurrency is experiencing and refuted the assumption that the network is unnecessarily unstable.
Bons conducted a number of tests and came to the conclusion that transactions on the Solana network are both smooth and efficient. This is in contrast to the assertion that the network frequently fails because of traffic congestion.
He continued by explaining that bot spam, which the network accurately recognizes as unsuccessful attempts is the cause of the high failure rates.
Following Ethereum, a number of commentators, including Brian Kelly, the Chief Executive Officer of BKCM, have speculated that Solana could be the next token to introduce in the United States as a crypto-based spot exchange-traded fund (ETF).
However, other analysts, such as Nate Geraci from The ETF Store, believe that in order for a Solana spot ETF to become a reality, either there must be a Solana futures product on the CME or there should be more stringent and transparent regulations regarding cryptocurrencies.
For the formation and approval of cryptocurrency exchange-traded funds (ETFs), the legal framework is a key aspect. The House of Representatives recently approved the FIT21 bill, allowing the classification of several alternative cryptocurrencies as commodities.
This occurrence may present an opportunity for Cryptocurrency in the event that the Securities and Exchange Commission (SEC) decides to change its position on the classification of the cryptocurrency in question.
It is still a problem that in its current state, the Securities and Exchange Commission (SEC) has clearly classified Solana as a security.
In spite of this, Geoffrey Kendrick, an analyst at Standard Chartered Bank, has forecast that the Securities and Exchange Commission (SEC) will allow exchange-traded funds (ETFs) for cryptocurrencies like Ripple’s XRP and Solana by the year 2025.
The recent acceptance of Ethereum spot ETFs, which could signal a shift in current regulatory attitudes, forms the basis of this forecast. Kendrick asserts that the political level in the United States’ support for cryptocurrencies will determine the future course of action.