which crypto fund is next?

The approval of the Ethereum ETF has given the crypto community hope for the launch of other altcoin-based funds.

Last week, the U.S. Securities and Exchange Commission (SEC) approved requests to open spot Ethereum ETFs. The cryptocurrency community sees this move as an opportunity to launch funds with other leading altcoins, including Solana ETFs.

How a spot ETF works

A dot ETF is a tool through which stock exchange participants can invest in digital cryptocurrency without purchasing and storing it in physical form. This procedure is based on monitoring the real market price of the asset.

After purchasing shares of an ETF in cash, the investor receives a stake in the fund. The fund represents a certain volume of cryptocurrencies in their real form. Fund specialists manage the portfolio.

With a vacancy in Bitcoin ETF, investors easily gain exposure to cryptocurrency. They do not need to buy, hold or manage their portfolios independently, which could drive increased investment in the cryptocurrency market.

Acceptance of Crypto ETFs in the US

In late 2021, the SEC allowed the launch of Bitcoin futures ETFs for the first time. Then, in January 2024, the SEC approved the first 11 Bitcoin ETFs in cash. Shades of grayThe SEC’s lawsuit against the SEC was vital in changing the regulator’s position.

The victory in the case and the subsequent recognition of the legality of spot ETFs made it possible to reduce the distance between digital and traditional assets. Grayscale, which previously operated the Bitcoin Trust with certain restrictions, now has the opportunity to transform into a full-fledged ETF.

Altcoin ETFs

The SEC approved Forms 19b-4 for eight Ethereum-based exchange-traded funds (Grayscale, Bitwise, Black stone, VanEckARK 21Shares, Invesco, Fidelityand Franklin) in a single decision, thus marking the beginning of ETFs based on altcoins.

Following the approval of the Ethereum ETF, the crypto community is wondering whether funds based on other popular altcoins will see the green light.

Solana ETF

Solana (SUN), a rising star in the blockchain space, could also be a candidate for its spot ETF. The creation of the Solana The ETF is still subject to regulatory approval. To do this, the fund issuer must demonstrate that the funds comply with all legal and regulatory standards, including investor protection and market integrity.

Although the exact timing of approval is not yet clear, experts believe that Solana could soon enter the cryptocurrency spot ETF market.

What Industry Players Are Saying

Investment company BKCM CEO Brian Kelly said that after the legalization of spot Ethereum ETFs, Solana ETFs will enter the American stock market. That altcoin will become ETH’s main competitor.

Bloomberg ETF analyst James Seyffart also noted that after Bitcoin and Ethereum ETFs, exchange-traded fund providers will likely turn their attention to Solana.

According to Seyffart, it will be a few years before the crypto derivatives market is fully supervised by the US Commodity Futures Trading Commission (CFTC). The expert emphasized that the approval of the bill “On Innovation and Financial Technologies for the 21st Century” (FIT21) can accelerate this process.

Bitwise Investment CEO Hunter Horsley stated that by the end of 2024, the cryptocurrency community will be surprised by how many financial companies will invest their capital in Bitcoin spot ETFs.

The head of Bitwise is convinced that the distribution of a new class of digital assets will make the crypto market even more attractive to investors.

Tristan Frizza, founder of Zeta Markets, commented to crypto.news that many consider BTC, ETH and SOL to be the three significant cryptocurrencies of this market cycle. Therefore, with the approval of the ETH ETF, SOL will likely be the next ETF candidate.

“While Bitcoin has been touted as ‘digital gold’ and Ethereum has an institutional focus, Solana is the network embraced by retail users with consistently one of the highest activity metrics. The recent boom in TGE protocol and token launches on Solana has also brought a lot of attention, users, and capital flow to the network, and the anticipation of further growth will make it seem more than likely to place Solana as a prime asset to consider. for the ETF.”

Tristan Frizza, founder of Zeta Markets

While nothing is clear yet, the impact of such an ETF approval will likely attract subsequent attention, capital, developer, and user activity, which will further accelerate Solana’s existing flywheel, which is what many of the network’s backers are likely to be interested in. counting, concluded Frizza. .

crypto.news also requested comments from the Solana Foundation team on the likelihood of approval for the Solana ETF.

Conclusion: Will the Crypto Industry See Solana ETFs?

The SEC’s approval of spot Bitcoin ETFs has sparked interest in the potential of Solana-based ETFs, which could make investing in the SOL token more accessible to everyone.

The approval of an altcoin ETF would be a significant milestone, potentially similar to the approval of spot Bitcoin and Ethereum ETFs. It would promise to attract more institutional participants to the cryptocurrency market.

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