Which cryptocurrency fund will be the next to launch an Altcoin ETF
The recent approval of a spot Ethereum ETF has injected optimism into the crypto community for the future launch of other altcoin-based funds.
Last week, the U.S. Securities and Exchange Commission (SEC) greenlit applications for spot Ethereum ETFs, paving the way for potential funds with other top altcoins like Solana.
Spot ETFs operate as a means for stock exchange participants to invest in digital cryptocurrency without physically owning it, tracking the real-time market value of the asset.
After acquiring shares in a spot ETF, investors gain a stake in the fund, which holds a specific amount of cryptocurrencies in their actual form, managed by fund experts.
The acceptance of Crypto ETFs in the U.S. has been steadily growing, with the SEC approving futures Bitcoin ETFs in late 2021 and spot Bitcoin ETFs in January 2024 following a crucial lawsuit by Grayscale.
The approval of Ethereum ETFs has opened the door for altcoin-based ETFs, with industry giants like Grayscale, Bitwise, BlackRock, VanEck, ARK 21Shares, Invesco, Fidelity, and Franklin being approved for Ethereum-based ETFs.
Solana, a rising star in the blockchain world, may also be a candidate for its own spot ETF pending regulatory approval, aiming to comply with legal standards and investor protection protocols.
Industry experts like Brian Kelly, CEO of BKCM, and Bloomberg’s ETF analyst James Seyffart predict that Solana could soon follow the footsteps of Bitcoin and Ethereum ETFs, attracting significant attention and investment.
Bitwise Investment CEO Hunter Horsley anticipates a surge in financial institutions investing in Bitcoin spot ETFs by the end of 2024, making the crypto market even more appealing to investors.
Tristan Frizza, founder of Zeta Markets, suggests that the approval of an Ethereum ETF could pave the way for a Solana ETF, potentially making SOL more accessible to a broader audience.
The approval of a Solana ETF would mark a significant milestone, enticing more institutional players into the cryptocurrency market and fueling further development and user engagement within the Solana ecosystem.
As the industry awaits a decision on the Solana ETF, the potential impact of such approval could be transformative, ushering in a new era of investment opportunities in the digital asset space.
