TL;DR
- Combined ETF Prediction: Nate Geraci, President of The ETF Store, predicts the arrival of a combined spot Bitcoin (BTC), Ethereum (ETH), and Solana (SOL) ETF in the coming months.
- Solana’s Regulatory Hurdle: While Bitcoin and Ethereum dominate the spotlight, approval for other cryptocurrencies like Solana ETFs faces regulatory challenges.
- Solana as a Strong Contender: Brian Kelly, a prominent crypto investor, believes Solana could be the next candidate for a spot ETF in the U.S. Solana’s growing popularity and adoption by developers make it a strong argument for potential inclusion in a future ETF.
The cryptocurrency ETF landscape is expected to see a significant shift with the potential arrival of a combined ETF spot Bitcoin (BTC), Ethereum (ETH), and Solana (SOL). This prediction comes from Nate Geraci, President of The ETF Store, who anticipates an ETF issuer filing for such a product in the coming months.
Prediction…
An ETF issuer will file for combined spot btc, eth, & sol ETF in next few months.
We’re quickly heading down path towards index-based & actively managed crypto ETFs.
— Nate Geraci (@NateGeraci) July 22, 2024
Geraci’s forecast aligns with the growing anticipation surrounding the approval of Ethereum ETFs in the U.S. Just last week, the Chicago Board Options Exchange (CBOE) announced the launch of five spot Ethereum ETFs on July 23rd, pending regulatory approval. This follows a change in the rules the SEC made back in May that paved the way for these products.
Yet, the introduction of these Ethereum ETFs is dependent on the SEC’s ultimate endorsement of every issuer’s registration documents. To stand out from the competition, many issuers have revealed intentions to temporarily eliminate or lower fees once trading commences.
Solana ETF Potential Hinges on Regulation
While the focus remains on Bitcoin and Ethereum, approval for other cryptocurrencies like Solana ETFs seems unlikely without further regulatory changes. James Seyffart, Bloomberg’s ETF analyst has emphasized the need for a regulated market to monitor these assets for potential fraud and manipulation.
This highlights a key point of contention in the crypto ETF space – the SEC’s cautious approach towards approving products outside the two leading cryptocurrencies.
Solana: A Strong Contender for Next Combined ETF
Brian Kelly, a well-known crypto investor, however, suggests Solana could be the next candidate for a spot ETF in the U.S. He believes Bitcoin, Ethereum, and Solana are the “big three” for the current crypto cycle. Kelly’s view is echoed by others who see Solana’s growing popularity and adoption by developers as strong arguments for its potential inclusion in a future ETF.
Bitcoin Investor Metrics Hint at Bullish Outlook
Despite a recent decline in the number of Bitcoin wallet addresses holding BTC, on-chain analytics firm Santiment suggests this could be a positive sign for investors. Historically, such mass liquidations have often been followed by rebounds. For individuals looking at Bitcoin from a long-term perspective, this indicates a possible chance to make a purchase.
The percentage of Bitcoin supply in profit has also dropped, but CryptoQuant founder Ki Young Ju points out the importance of over-the-counter (OTC) markets compared to centralized exchanges, suggesting institutional accumulation is taking place.
Large whale wallets, including spot ETFs and custodial services, have acquired a significant portion of the circulating supply this year, suggesting growing institutional interest in Bitcoin. This on-chain activity contradicts the bearish sentiment of the decline in profitable Bitcoin holdings.
