what is the next crypto fund?

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

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

How a Spot ETF Works

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

After purchasing shares of an ETF for 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 place in the Bitcoin ETF, investors easily gain exposure to cryptocurrency. They do not need to purchase, hold or manage their portfolios independently, which could provide incentives to invest more in the cryptocurrency market.

Acceptance of Crypto ETFs in the United States

In late 2021, the SEC authorized the launch of Bitcoin futures ETFs for the first time. Then, in January 2024, the SEC approved the first 11 spot Bitcoin ETFs. Shades of greyThe lawsuit filed against the SEC was essential in changing the regulator’s position.

The victory in the case and the subsequent recognition of the legality of spot ETFs helped narrow 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 ETF

The SEC approved Forms 19b-4 for eight Ethereum-based exchange-traded funds (Grayscale, Bitwise, black rock, VanEckARK 21Actions, Invesco, loyaltyand Franklin) in a single decision, marking the beginning of altcoin-based ETFs.

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 (GROUND), a rising star in the blockchain space, could also be a candidate for its spot ETF. The creation of 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 remains unclear, experts believe that Solana could soon enter the cryptocurrency spot ETF market.

What industry players are saying

The CEO of investment company BKCM, Brian Kelly, said that after the legalization of Ethereum spot ETFs, Solana ETFs will enter the US stock market. This altcoin will become the main competitor of ETH.

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 United States Commodity Futures Trading Commission (CFTC). The expert emphasized that Approval The “Innovation and Financial Technologies for the 21st Century” (FIT21) bill can accelerate this process.

Hunter Horsley, CEO of Bitwise Investment, claimed that by the end of 2024, the cryptocurrency community will be surprised by the number of financial companies that 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 for investors.

Tristan Frizza, founder of Zeta Markets, told crypto.news that many consider BTC, ETH and SOL to be the three important 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 adopted by retail users with consistently among the highest activity metrics. The recent booms in protocol launches and tokenized TGEs on Solana have also brought a lot of attention, users, and capital inflows to the network, and anticipation of further growth will make it seem more than likely to position Solana as a leading asset. considered for the ETF.

Tristan Frizza, founder of Zeta Markets

While nothing is clear yet, the impact of such an ETF approval will likely attract attention, capital, developers and users, further spinning Solana’s existing flywheel, and That’s what many of the network’s backers are likely counting on, Frizza concluded. .

crypto.news also requested comment from the Solana Foundation team regarding the likelihood of the Solana ETF being approved.

Bottom Line: Will the Crypto Industry See Solana ETFs?

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

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

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