Solana (SOL) ETFs Are Far From Approvals Despite Widespread Optimism, Says CF Benchmarks CEO Sui Chung

Sui Chung, the CEO of CF Benchmarks has described Solana ETFs as a non-starter downplaying widespread optimism of a launch.

Solana (SOL) exchange-traded funds (ETFs) are gaining anticipation in the crypto industry. However, the CEO of CF Benchmarks, Sui Chung, has expressed skepticism regarding the imminent approval of Solana ETFs.

Chung's statement comes amid widespread optimism and anticipation of Solana ETFs, given the SEC's approval of Bitcoin and Ether ETFs earlier this year. However, Chung believes that Solana ETFs will face different treatment due to outstanding requirements.

In an interview with Forkast, Chung highlighted the absence of a regulated Solana futures market as a key factor. According to the SEC, a highly regulated futures market is a prerequisite for crypto ETFs for exchanges in the country.

“Solana ETFs are not going to happen, or at least, it won't happen on the same basis as how Bitcoin and Ether happened.”

Despite Chung's skepticism, Solana enthusiasts are still hopeful for the approval of the products, which would open a new investment channel for traditional investors. Bitcoin and Ether futures were listed on the CME in 2017 and 2021, respectively, paving the way for future approval of the products.

“We have a very clear indication from the SEC on what they want to see before they give the green light to spot ETFs. And it's a highly regulated futures market. And we have two examples of that. We have Bitcoin futures that trade on the CME, and we have Ether futures that trade on the CME.”

Solana price is currently trading at $130.20, showing a 1.4% decrease in the last 24 hours. While SOL is typically known for outperforming the broader market, recent figures indicate struggles as macro factors turn negative.

Solana has outperformed BTC and ETH this year, and a spot ETF would further boost its performance ahead of upcoming bullish events. Spot Bitcoin ETFs continue to attract inflows after rising to new highs in Q1 2024. This performance has raised optimism among Solana holders of a similar outcome should funds get approved.

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