A Cboe executive says the creation of a Solana ETF is unlikely to happen without a futures market and regulatory transparency

Cboe vice president and global director of ETF listings Rob Marrocco believes that cryptocurrency ETFs other than Bitcoin and Ethereum are unlikely to occur until the market and regulatory landscape changes.

Marrocco said during the ETF Store podcast on June 11 that market expectations for Solana (SOL) and XRP spot ETFs are unrealistic in the short term because these cryptocurrencies do not have a futures market, which was a major factor in the approval of spot Bitcoin and Ethereum ETFs .

He added that this means that the only possible way to bring the Solana ETF to market will be to first introduce the Solana futures ETF, which will then pave the way for the spot ETF.

Morocco further stated that even if Solana futures ETFs were introduced, they would need to be traded for a longer period to achieve good performance. However, this process may take a long time and may take a long time to achieve.

He emphasized the length of the process, stating that “it could take forever to get to this point.”

Alternative path

According to Marrocco, a more expedient approach would be to establish a comprehensive regulatory framework for cryptocurrencies. This framework would define what constitutes a security versus a commodity, allowing the SEC to proceed accordingly.

However, this would require legislative action that could take the same amount of time or longer, depending on the speed and willingness of politicians.

Despite the challenges, especially during the election period, Morocco suggested that having a clear regulatory framework would be a faster route compared to waiting for the futures market to develop.

VettaFi editor-in-chief Lara Crigger largely agreed, stating:

“Solana does not have a futures market. There is less data that the SEC specifically looks for to demonstrate that the market is large enough and transparent enough to support an ETF.”

Industry experts are divided on Solana ETFs, with JP Morgan and Bloomberg expressing doubts, while Bernstein believes the Ethereum ETF approval paved the way for similar tokens like Solana to gain commodity classification.

FIT21

Regulatory uncertainty in the U.S. is beginning to subside as cryptocurrencies become an increasingly important issue for American voters in an election year.

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

FIT21, passed with strong bipartisan support in the House, establishes clear regulatory responsibilities between the Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC).

Under the Act, the CFTC will have jurisdiction over digital goods, while the SEC will oversee digital assets offered under an investment treaty. This demarcation is key to reducing regulatory overlap and providing clearer guidance for market participants.

The act has not yet entered into force and is currently awaiting a vote in the Senate.

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