Solana Anticipates Classification as Commodity Due to Ethereum ETF Spot Approval
With the recent approval of a spot exchange-traded fund (ETF) for Ether (ETH) in the United States, the crypto sector is anticipating a significant regulatory shift. This development has also sparked expectations that Solana (SOL), Ethereum’s rival, may soon be classified as a commodity. According to a research report by Bernstein, this could mark a notable precedent in the industry.
The Impact of Regulatory Classification
- The classification of cryptocurrencies as securities or commodities has far-reaching implications.
- Approval of ETFs is contingent on tokens being classified as commodities.
- Security classification subjects cryptocurrencies to stricter SEC regulations.
Deadline Approaches for SEC Decisions
As the deadline for SEC decisions on ETF requests draws near, the classification of cryptocurrencies underpins market dynamics. Ether’s value surged following positive sentiment from Bloomberg analysts and regulatory updates indicating a higher probability of approval. This week, multiple deadlines for Ether spot ETF requests underscore the evolving regulatory landscape.
Insights from Bernstein and Galaxy
Bernstein predicts a price rally for Ether akin to Bitcoin’s surge after the approval of spot ETFs. The report highlights the appealing floating supply and offer of Ether compared to Bitcoin, citing substantial cryptocurrency locked in staking and low movement of ETH supply. While immediate approval for spot ETFs is likely, S-1 requests may take additional time to materialize.
Alex Thorn, head of research at Galaxy Digital, forecasts a delay in spot vehicles for ETH trading until summer if the SEC greenlights spot ETFs. Galaxy anticipates a rollout of ETFs on exchanges in July or August, projecting simultaneous approval of requests to maintain market fairness.
Hot Take: Ethereum ETF Spot Approval Could Set the Stage for Solana’s Classification as a Commodity
According to Bernstein, the approval of the ETF spot on Ethereum could increase expectations that Solana will also be classified as a commodity.