Greater than 70 cryptocurrency exchange-traded funds (ETFs) are slated for assessment by the US Securities and Trade Fee (SEC) this yr. In accordance with Bloomberg analyst Eric Balchunas, the record contains proposed ETFs holding a variety of belongings, from altcoins to memecoins to derivatives devices.
“Every thing from XRP, Litecoin and Solana to Penguins, Doge and 2x Melania and all the things in between,” Balchunas said in an April 21 put up on the X platform. “Gonna be a wild yr.”
Associated: ARK adds staked Solana to two tech ETFs
Unsure institutional demand
The deliberate funds listings come as institutional buyers flip more and more bullish on crypto as an asset class.
Upward of 80% of establishments say they plan to increase allocations to crypto in 2025, in response to a March report by Coinbase and EY-Parthenon.
Nonetheless, analysts warning that simply because ETFs are authorised for US listings doesn’t assure widespread adoption, particularly for funds holding extra obscure different cryptocurrencies.
“Having your coin get ETF-ized is like being in a band and getting your songs added to all of the music streaming providers,” Balchunas said.
“Doesn’t assure listens however it places your music the place the overwhelming majority of the listeners are.”
Sygnum Financial institution’s analysis head, Katalin Tischhauser, instructed Cointelegraph she expects altcoin ETFs to see cumulative inflows of a number of hundred million to $1 billion, far less than spot Bitcoin funds.
Funds holding Bitcoin (BTC) — the primary spot cryptocurrency authorised for itemizing in a US ETF wrapper — attracted upward of $100 billion in net assets final yr.
Nonetheless, ETFs utilizing choices and different derivatives to supply structured publicity to cryptocurrencies similar to Bitcoin and Ether would possibly see extra institutional uptake, analysts stated.
Choices on spot cryptocurrencies unlock quite a few potential portfolio methods for buyers and will potentially catalyze “explosive” price upside for digital belongings similar to Bitcoin, Jeff Park, Bitwise Make investments’s head of alpha methods, stated in September.
Choices are contracts granting the best to purchase or promote an underlying asset at a sure value.
On April 21, ARK Make investments added exposure to staked Solana (SOL) to 2 of its current ETFs. The asset supervisor stated it marks the primary time spot SOL has been out there to US buyers in an ETF.
Journal: ‘Bitcoin layer 2s’ aren’t really L2s at all: Here’s why that matters
Source link