Key Takeaways
- Litecoin and Solana ETF applications have a 90% chance of being approved this year.
- U.S. spot Bitcoin ETFs command $132.8 billion in net assets; Ethereum ETFs carry $10.65 billion in net assets.
- Ripple, Cardano, Dogecoin, and other altcoin ETFs are pending approval from the SEC.
A wave of optimism is coursing through the crypto markets today. Major developments at the U.S. Securities and Exchange Commission (SEC) could see Ethereum and Solana ETFs with staking enabled approved as early as July this year.
The SEC reportedly requests that issuers amend their applications to include language about staking, as several other altcoin ETF hopefuls await the regulator’s decision.
Altcoin Summer
If Bloomberg analyst James Seyffart’s predictions come to fruition, an altcoin ETF summer could arrive as early as July this year if the SEC acts “early” on Solana and staking ETF filings.
Solana (SOL), Litecoin (LTC), Ripple (XRP), Cardano (ADA), and even Dogecoin (DOGE) are amongst the list of altcoin ETF applications made by leading fund issuers such as Fidelity, 21Shares, Grayscale, and Bitwise. Seyffart’s note writes:
“ETFs that track broad crypto indexes may be approved by the SEC next month.”
On July 2, the SEC will decide whether to approve four crypto index/basket funds, which Bloomberg analysts believe have a 90% approval chance.
According to Seyffart, Litecoin and Solana ETFs have the highest odds of being approved this year (90%), followed by Ripple (85%), Dogecoin (80%), Cardano (75%), Polkadot (75%), Avalanche (75%), and finally Sui (60%). Tron (TRX) remains an unknown.
That said, the SEC has recently issued a note, announcing that it will be delaying its decision on Polkadot and Hedera as it is “appropriate to designate a longer period within which to take action on the proposed rule change… so that it has sufficient time to consider the proposed rule change and the issues raised therein.”
Staking
One of the major developments in the crypto ETF space has been the SEC’s clarification that “certain” staking services do not constitute security activities.
This has raised hopes that soon, staking could be enabled on Ethereum ETFs, unlocking significant value for institutional investors.
The SEC may move ahead of the current timeline in response to Rex-0Sprey’s bid to launch Solana and Ethereum staking products.
According to Seyffart, conversations “around the nuances” of staking in Solana ETFs are underway as the SEC requests updated language from fund applications.
The market is excited as Bitcoin ETFs have drawn almost $1 billion in net inflows this week.
In addition, Ethereum ETFs are currently on their most consistent inflow streak, which has lasted for 17 days, raking in over $1 billion in net inflows.
Eddie is a gaming and crypto writer at CCN. Covering the often weird and wonderful world of Web3 with an adoring, but skeptical eye.
Prior to CCN, Eddie has spent the past seven years working his way through the crypto, finance, and technology industry. He began with PR and journalism with Bitcoin PR Buzz and BitcoinNews.com, eventually working his way to become a copywriter with a dozen firms, including the likes of Polkadot before returning to journalism in 2023.
Having studied Radio production and journalism at University in the UK, Eddie spent a few years making podcasts and presenting on a local London radio station as he built up his writing chops.
A lifelong skateboarder, Eddie can often be found at the skatepark or touring the streets looking for something new to try. That, or kicking back playing JRPGs on his original PSP.
