Ethereum ETF approval will set stage for Solana ETF, commodity classification

According to a recent Bernstein report, the approval of a spot Ethereum (ETH) exchange-traded fund (ETF) in the US may establish a precedent for classifying Solana (SOL) as a commodity.

The classification of cryptocurrencies as either securities or commodities holds significant implications. Commodity classification facilitates ETF applications and approvals, while security classification subjects assets to stricter SEC oversight.

‘Big three’

The approval of spot Ethereum ETFs would mean the SEC views the second-largest crypto as a commodity, setting a critical precedent. This would mark the first time a non-Bitcoin digital asset receives such a classification, raising expectations for Solana to follow suit.

Ether’s price increased earlier this week after Bloomberg analysts raised the likelihood of SEC approval for spot Ether ETFs to 75% from 25%, following reports that the regulator requested updates to filings. The SEC’s final decisions on these applications are expected later today, on May 23, following multiple delays.

Bernstein’s report noted that Bitcoin’s 75% rally following the approval of spot ETFs suggests similar price action for Ethereum after approval of spot ETFs.

However, if the SEC rejects the applications, Ethereum could experience significant volatility and a steep price correction in the coming days, according to CryptoQuant research.

Crypto investor Brian Kelly expressed similar optimistic views about Solana and the the potential regulatory approval of Ethereum (ETH) ETF products. He speculated that SOL could be the next altcoin to receive ETF approval, highlighting it as a likely candidate for investment managers to push forward.

Kelly emphasized that Bitcoin, Ethereum, and Solana are the “big three” digital assets that might see ETF products approved in this cycle. He noted the success of Bitcoin ETFs, which have collectively amassed a significant amount of Bitcoin, valued at around $58 billion, indicating strong demand for…