Cboe executive: Solana ETF unlikely to launch without SOL futures

Author: Mike Dalton, Cryptoslate; Translator: Wuzhu, Golden Finance

Cboe Vice President and Global Head of ETF Listings Rob Marrocco believes that crypto ETFs other than Bitcoin and Ethereum are unlikely to appear until the market and regulatory landscape changes.

Marrocco said in the ETF Store podcast on June 11 that market expectations for Solana (SOL) and XRP spot ETFs are unrealistic in the short term because there are no futures markets for these cryptocurrencies, which is a major factor in approving spot Bitcoin and Ethereum ETFs.

He added that this means that the only feasible way to bring a Solana ETF to market is first through a Solana futures ETF and then pave the way for a spot ETF.

Marocco further said that even if a Solana futures ETF is introduced, they will need to trade for quite some time to establish a track record. However, this process could be extended and could take quite some time to achieve.

He highlighted the length of the process and said that “it could take a long time to get to this point.”

Alternative Pathways

According to Marrocco, a more expedient approach would be to establish a comprehensive crypto regulatory framework. This framework would delineate what is a security and what is a commodity, allowing the SEC to act accordingly.

However, this would require legislative action, which could take just as long, or even longer, depending on the speed and willingness of politicians.

Despite the challenges, especially during an election season, Marrocco said that establishing a clear regulatory framework would be a faster path than waiting for futures markets to develop.

VettaFi Editor-in-Chief Lara Crigger largely agreed, saying:

“There is no futures market for Solana. The data that the SEC is specifically looking for is less than sufficient to show that the market is large enough and transparent enough to support an ETF.”

Industry experts have mixed views on the Solana ETF, with JPMorgan and Bloomberg expressing skepticism, while Bernstein believes that the approval of an Ethereum ETF paves the way for tokens like Solana to gain commodity classification.

FIT21 Act

Regulatory uncertainty in the United States is beginning to recede as cryptocurrencies become an increasingly important issue for American voters in an election year.

Congress recently passed a new piece of legislation on May 22, titled the Financial Innovation and Technology for the 21st Century Act (FIT21). The bill seeks to establish a comprehensive regulatory framework for digital assets to ensure investor protection and market integrity.

Passed by the House of Representatives with strong bipartisan support, FIT21 clarifies regulatory responsibilities between the Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC).

Under the bill, the CFTC would gain jurisdiction over digital commodities, while the SEC would oversee digital assets offered as part of investment contracts. This division is critical to reducing regulatory overlap and providing clearer guidelines for market participants.

The bill has not yet become law and is currently awaiting a vote in the Senate.