Analysts from Golden Finance disclosed that the U.S. Securities and Exchange Commission (SEC) is highly likely to start approving a batch of exchange-traded funds (ETFs) linked to cryptocurrencies one after another next month. This move may kick off a “summer of altcoin ETFs”.
Eric Balchunas, a senior ETF analyst at Bloomberg, shared a memo from his colleague James Seyffart on the X platform (formerly Twitter) on Tuesday. The memo pointed out that ETFs tracking a wide range of cryptocurrency indices could be approved by the SEC as early as next month. Meanwhile, the SEC also has the possibility of taking early action and processing applications for Solana and pledged ETFs. Balchunas commented on this: “The market needs to be ready for a potential summer of altcoin ETFs, and Solana is likely to take the lead in it.”
Since the SEC approved spot funds that track the price trends of Bitcoin and Ethereum last year, the progress of Wall Street regulators’ approval of a new batch of cryptocurrency ETFs has been closely watched by cryptocurrency investors. Previously, Bloomberg Markets had predicted that by the end of this year, the possibility of Litecoin ETF being approved would be 90%, Dogecoin ETF 75%, and XRP ETF 65%. However, the SEC previously postponed its decision on new spot exchange-traded funds (ETFs) for cryptocurrencies such as Litecoin (LTC), Ripple (XRP), and DOGE (DOGE), which temporarily dashed investors’ expectations. Nowadays, analysts’ predictions about the “summer of altcoin ETFs” have once again ignited market enthusiasm.
If the SEC really starts approving the relevant ETFs next month as analysts predict, it will have a significant impact on the cryptocurrency market. On the one hand, the approval of ETFs will provide investors with more convenient investment channels, lower the investment threshold, and attract more funds to flow into the cryptocurrency market. On the other hand, this also means that the cryptocurrency market will further move towards standardization and gain more recognition from mainstream financial markets. However, the SEC considers numerous factors during the approval process, including market risks and investor protection, etc. The final approval result still has a certain degree of uncertainty. Investors in the cryptocurrency market are closely watching the SEC’s next move, and the market will continue to remain highly sensitive to related developments.
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