Will a Spot Solana ETF Follow Ethereum in 2024

Will a Spot Solana ETF Follow Ethereum in 2024

With the recent approval of the ETH ETF, excitement is growing about the possibility of a spot Solana ETF in 2024. Austin Federa from the Solana Foundation recently shared his insights on this potential development and its implications for investors.

Spot Solana ETF

Federa acknowledged the Ethereum community’s achievement as a significant milestone and expressed optimism that other proof-of-stake networks, like Solana, could soon see similar advancements. He emphasized the importance of regulated financial products, which enhance investors’ security and simplify the inclusion of cryptocurrencies in retirement accounts.

Federa highlighted key innovations within the Solana ecosystem, such as decentralized trading platforms Jupiter and Phoenix, which showcase Solana’s robust trading capabilities. Additionally, projects like Helium’s decentralized cell network are pushing technological boundaries and expanding the potential applications of the Solana blockchain.

When discussing the potential for government adoption, Federa noted that it is too early to predict if the US government will specifically embrace Solana. However, there is increasing interest in blockchain technology for its potential to support the US dollar’s dominance internationally. Stablecoin legislation could play a crucial role in this context.

Comparing Solana and Ethereum

Federa stressed that Solana does not need to surpass Ethereum in market capitalization. Instead, the focus is on long-term technological vision and ecosystem growth. He pointed out that the blockchain sector is still in its early stages, with tremendous development potential.

Solana’s unique single global state design allows for atomic composability, essential for decentralized finance (DeFi) and other applications. With high transaction throughput and rapid block finality, Solana offers a distinctive combination of speed and efficiency, setting it apart from modular blockchain systems.


Despite the optimism, some experts remain skeptical. JPMorgan’s Nikolaos Panigirtzoglou highlighted the uncertainty surrounding Ethereum’s classification as a security and doubted the SEC’s willingness to approve other ETFs, given that most tokens, aside from Bitcoin and Ethereum, are considered securities. He suggested that the approval of Ethereum ETFs was influenced by political pressure and underscored the need for new legislation to facilitate broader ETF approvals.

Hope for Solana’s ETF

On a more positive note, Bloomberg analyst James Seyffart predicted that a Solana ETF could succeed in the coming years, particularly with legislation like FIT21 defining securities and futures markets.

However, he acknowledged that Solana’s security status remains a potential obstacle. Additionally, the lack of a futures-based ETF for Solana in the US adds to the complexity of achieving approval.


To conclude, while the road to a spot Solana ETF faces challenges, regulatory clarity, and continued ecosystem innovation could pave the way for its future approval. Investors should stay informed and adapt their strategies accordingly.

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