Solana, Ripple ETFs Unlikely In Near Future, Says Cboe VP

Rob Marrocco, the Vice President and Global Head of ETF Listings at Cboe CBOE, on Wednesday highlighting the challenges of crypto ETFs beyond Bitcoin and Ethereum.

What Happened: Marrocco expressed skepticism regarding the near-term feasibility of ETFs based on cryptocurrencies like Solana SOL/USD and Ripple XRP/USD, citing the absence of a futures market for these assets as a significant hurdle.

He noted that the approval of spot Bitcoin and Ethereum ETFs was largely influenced by the existence of a futures market.

Regarding the potential for a Solana ETF, Marrocco suggested that a viable pathway would involve introducing a Solana futures ETF first, 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.

Marrocco emphasized the need for a comprehensive regulatory framework for cryptocurrencies, stating that it would provide clarity for market participants and regulatory agencies alike.

He acknowledged the challenges associated with legislative action but argued that it could offer a more expedient path compared to waiting for a futures market to develop.

Lara Crigger, the editor-in-chief of VettaFi, echoed Marrocco’s sentiments, emphasizing the lack of a futures market for Solana as a barrier to ETF approval by the SEC.

Also Read: Bitcoin Climbs Above $67.5K As Spot ETFs See $200M Outflows On 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 evolving regulatory dynamics in the US, the passage of the 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 in the House, seeks to address regulatory uncertainties surrounding digital assets and ensure investor protection and market integrity. Its enactment into law is pending a Senate vote, underscoring the ongoing legislative process.

While the prospects of 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 investment.

What’s Next: For further insights into the future of digital assets and the evolving regulatory landscape, consider attending Benzinga’s Future of Digital Assets event on Nov. 19.

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