ETFs
Solana, Ripple ETFs Unlikely in Near Future, Says Cboe VP
Rob Maroccovice president and global head of ETF listings at Cboe CBOE, highlighting on Wednesday the challenges of Crypto ETF beyond Bitcoin and Ethereum.
What happened: Morocco Express skepticism about the near-term feasibility of cryptocurrency-based ETFs like Solana SOL/USD and Ripple XRP/USD, citing the lack of a futures market for these assets as a significant obstacle.
He noted that the approval of Bitcoin and Ethereum spot ETFs was largely influenced by the existence of a futures market.
Regarding the potential for a Solana ETF, Marrocco suggested that a viable path forward would involve first introducing a Solana futures ETF, which could pave the way for a spot ETF.
However, he cautioned that even with the introduction of futures ETFs, establishing a track record could be a lengthy process.
Maroc highlighted the need for a comprehensive regulatory framework for cryptocurrencies, saying this would provide clarity to market participants and regulatory agencies.
He acknowledged the challenges associated with legislative action, but argued that it could offer a faster path than waiting for a futures market to develop.
Lara Criggerthe editor-in-chief of VettaFiechoed Marrocco’s sentiments, pointing to the lack of a futures market for Solana as an obstacle to the SEC’s approval of the ETF.
Read also: Bitcoin Climbs Above $67.5K as Spot ETFs See $200 Million Outflows Tuesday
Industry experts remain divided on the issue, with some expressing doubts about the prospects of Solana ETFs, while others believe that recent developments, such as the approval of Ethereum ETFs, could pave the way for similar tokens.
In the context of changing regulatory dynamics in the United States, the adoption of Financial Innovation and Technology for the 21st Century Act (FIT21) represents a significant development.
This bipartisan legislation aims to establish a clear regulatory framework for digital assets, delineating responsibilities between the CFTC and the SEC.
FIT21, which recently passed the House, aims to address regulatory uncertainties surrounding digital assets and ensure investor protection and market integrity. Its enactment is awaiting a Senate vote, underscoring the ongoing legislative process.
While the prospects for crypto ETFs beyond Bitcoin and Ethereum face challenges, regulatory developments such as FIT21 could play a crucial role in shaping the future landscape of digital asset investing.
And after: To learn more about the future of digital assets and the evolving regulatory landscape, consider attending Benzinga’s conference. The future of digital assets event on November 19.
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