Cboe Vice President and Global Head of ETF Listings Rob Marrocco believes that crypto ETFs beyond Bitcoin and Ethereum are unlikely until there are changes in the market and regulatory landscape.

In a June 11 podcast on ETF Store, Marrocco said that expectations for a Solana (SOL) or XRP spot ETF are unrealistic in the short term because these cryptocurrencies lack a futures market, which was crucial for the approval of spot Bitcoin and Ethereum ETFs.

He noted that the only feasible way to introduce a Solana ETF would be through a Solana futures ETF first, which would then lead to a spot ETF. However, even if Solana futures ETFs were launched, they would need to trade for a significant period to establish a track record, which could take a long time.

Marrocco emphasized the length of this process, saying it could "take forever to get to that point."

As an alternative, he suggested that a quicker approach would be to establish a comprehensive crypto regulatory framework that distinguishes between securities and commodities, allowing the SEC to act accordingly. However, this would require legislative action, which could take just as long or longer, depending on political dynamics.

VettaFi editor-in-chief Lara Crigger agreed, noting the lack of a futures market for Solana and the specific data the SEC seeks to demonstrate market size and transparency.

Industry opinions on Solana ETFs are mixed, with JP Morgan and Bloomberg expressing doubt, while Bernstein believes that the approval of an Ethereum ETF has paved the way for similar tokens like Solana to be classified as commodities.

Regulatory uncertainty in the US is easing as crypto becomes a more significant issue for voters. Congress recently passed the "Financial Innovation and Technology for the 21st Century Act (FIT21)" on May 22, aiming to create a comprehensive regulatory framework for digital assets to ensure investor protection and market integrity.

FIT21, which 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). The CFTC will oversee digital commodities, while the SEC will regulate digital assets offered as part of an investment contract. This delineation is crucial for reducing regulatory overlap and providing clearer guidelines for market participants.

The bill has yet to become law and is currently pending a Senate vote.