Bernstein: Approval of Ethereum Spot ETF to Boost Expectations for Solana’s Classification as a Commodity

If the US Securities and Exchange Commission (SEC) approves the Ethereum (ETH) exchange-traded fund (ETF), it would be seen as a significant regulatory loosening for the cryptocurrency industry and would boost expectations of Solana (SOL), a competitor to Ethereum, being classified as a commodity. According to a report by Bernstein Research on Tuesday, the Biden administration may soften its stance on cryptocurrencies before the November presidential election, while a potential victory for Trump would generally favor the cryptocurrency industry. Analysts believe that if Trump is elected, cryptocurrencies could see major legislative and institutional support, resulting in lasting structural changes. Furthermore, the approval of an Ethereum ETF would pave the way for the recognition of the first non-Bitcoin blockchain asset as a commodity, offering hope for Ethereum’s peers (likely Solana) to follow suit. Classifying cryptocurrencies as securities or commodities has far-reaching implications, as ETF applications and approvals depend on tokens being classified as commodities, while classification as securities implies stricter regulation by the SEC.