Article reprint source: blockchain knight
Source: cryptoslate
Compiling: blockchain riders
According to a recent report by Bernstein,VideopokerforfunThe approval of spot ETH ETF in the US could set a precedent for classifying Solana as a commodity.
It is significant to classify Crypto assets as securities or commodities. Commodity classification facilitates ETF application and approval, while securities classification makes assets subject to stricter supervision by the SEC (Securities and Exchange Commission).
The approval of spot ETH ETF will mean that SEC treats the second largest Crypto asset as a commodity, thus creatingVideopokerforfunSet an important precedent. This will mark the first time that non-BTC digital assets have obtained this classification, prompting people to emulate Solana.
Earlier this week, Bloomberg analysts said SEC's chances of approving spot ETH ETF would rise from 25% to 75%, followed by a rise in ETH prices.
SEC's final decision on these applications, which has been delayed several times, is expected to be made later.
The Bernstein report points out that spot BTC ETF prices rebounded by 75% after approval, suggesting that similar price movements may occur after spot ETH ETF is approved.
However, according to CryptoQuant's research, if SEC rejects these applications, it could lead to significant price fluctuations and a sharp correction in ETH prices in the coming days.
Brian Kelly, an investor in Crypto assets, expressed similar optimism in a recent interview with CNBC that Solana and ETH ETF products might be approved by regulators.
Kelly speculates that Solana may be the next Crypto asset to be approved by ETF and stresses that it is likely to be a candidate asset driven by investment managers.
Kelly stressed that BTC, ETH and Solana are the "three major" digital assets that may be approved for this round of ETF products. BTC ETF has been a success, with investment managers accumulating large amounts of BTC worth about $58 billion, indicating strong demand for regulated Crypto investment products.
However, Kelly also acknowledges that there is some skepticism within the Solana community.
He mentioned that Solana's initial Certificate issue (1CO) and its classification by SEC as securities could pose challenges to ETF approval.
Nonetheless, Kelly is optimistic that if ETH ETF gets the green light, regulatory and political changes could increase Solana ETF's chances of approval.
The Bernstein report, released before SEC made a final decision on the ETH ETF application, also highlighted that the Biden administration's position on Crypto assets could change in the light of recent developments.
In addition, the report points out that if Trump is re-elected, his administration is likely to further support the Crypto asset industry through legislative and regulatory measures.
"if Trump is elected, Crypto assets are likely to receive substantial legislative and institutional support, leading to long-term structural changes in the financial integration of Crypto assets," the report said. "
Solana ETF is likely to be approved at a time when the regulatory environment is changing and bipartisan support for Crypto assets is growing.
Recently, the House of Representatives, with strong Democratic support, passed the 21st Century Financial Innovation and Technology Act (Financial Innovation and Technology for the 21st Century,FIT21), indicating a potential political shift.
Jake Chervinsky, a lawyer, described the passage of the bill as a "vote of no confidence" in SEC's current approach to regulating Crypto assets, suggesting the political consequences of insisting on an anti-Crypto asset stance.
Regulatory approval of Solana ETF will mark an important milestone for the Crypto asset industry, indicating mainstream acceptance and integration. However, with ETH ETF still awaiting approval, the industry remains cautiously optimistic about the future.