Cboe Exchange Executive: Solana ETF Unlikely to Appear in the Short Term

According to a report from CryptoSlate, Rob Marrocco, the Vice President responsible for ETF listings at Cboe, a leading exchange with multiple Bitcoin spot ETFs, believes that without first establishing a futures market or changing regulatory conditions, it is unlikely for cryptocurrency ETFs beyond Bitcoin and Ethereum to emerge.

No Spot ETF Without Futures

Marrocco stated in the ETF Store Podcast on June 11 that expectations for Solana SOL and XRP spot ETFs in the short term are unlikely to materialize!

These cryptocurrencies lack a futures market, and the futures market is a key factor for the approval of spot Bitcoin ETFs.

This means the only feasible way to bring a Solana ETF to the market is through a Solana futures ETF first, before there is a chance for a spot ETF. However, even with the launch of Solana futures ETFs, they will need to trade for a considerable period of time to establish a track record to prove that the market is large and transparent enough, a process that could take a significant amount of time.

Legislation is Another Path

Marrocco believes another approach is to establish a comprehensive regulatory framework for cryptocurrencies. This framework would define the composition of securities and commodities, enabling the U.S. Securities and Exchange Commission (SEC) to take appropriate action.

This would require legislative action, which may take a similarly long or even longer time, but with cryptocurrencies becoming an increasingly important issue for U.S. voters in an election year, it seems like a viable option.

The House passed FIT21 on May 22, the "21st Century Financial Innovation and Technology Act," which, if also passed by the Senate and signed into law, will further clarify the regulatory responsibilities of the SEC and the Commodity Futures Trading Commission (CFTC) in the digital asset space and make regulatory principles clearer.

The cryptocurrency market bill FIT21 successfully passed the House, with both support and opposition, what is the next step?

Experts have differing opinions on the issue of Solana ETFs, with skepticism from JPMorgan and Bloomberg, while Bernstein believes that the approval of an Ethereum ETF will pave the way for similar tokens like Solana to obtain commodity classification.