Ether ETF Speculation Could Weigh on SOL, Wider Altcoin Market

Traders will not want to be short ETH while going through an ETF approval, one observer said.

Renewed hopes of an ether ETF debut in the U.S. is likely to see investors take money out of SOL and other alternative cryptocurrencies to invest into ETH.

Approval of a spot ether ETF is likely to broaden mainstream demand for crypto in the long run.

The crypto bull run that began last October has been characterized by Ethereum's ether (ETH) token underperforming rival layer 1 coins such as SOL, BNB and market leader bitcoin (BTC).

That, however, could change in the coming weeks, with ether overtaking the others on renewed hopes that a spot ether exchange-traded fund (ETF) will be approved in the U.S., opening the doors to a deluge of institutional money.