Crypto news: Katalin Tischhauser of Sygnum Bank has expressed doubts regarding the spot ETFs of Solana and Cardano, aligning with other experts, while VanEck maintains a more optimistic view on the subject.
Let’s see all the details below.
Katalin Tischhauser: the doubts about Solana and Cardano spot ETF funds in the crypto field
As anticipated, Solana, Cardano, and other crypto have little chance of obtaining approval as spot ETFs in the United States and may encounter further difficulties in attracting investors.
Katalin Tischhauser, head of investment research at Sygnum Bank, recently shared her skepticism about this possibility.
According to Tischhauser, the main obstacle for the approval of crypto ETFs in the United States is the lack of trading platforms that the Securities and Exchange Commission (SEC) considers adequate for market surveillance.
The SEC has the duty to protect against market abuses, frauds, and manipulations, and currently considers criptovalute exchanges as “unregulated securities exchanges”.
The availability of CME futures for Bitcoin and Ethereum has represented a temporary solution.
However, until these issues are resolved and the SEC accepts platforms like Coinbase as surveillance markets, the creation of additional crypto ETFs will remain uncertain.
A weak demand for altcoin ETFs
Even if altcoin ETFs were approved, Tischhauser believes that the demand would be limited. According to her, besides Bitcoin and Ethereum, there would not be a significant demand for ETFs on other cryptocurrencies.
The recognition of the name Ethereum is already lower than that of Bitcoin, and other cryptocurrencies like Solana have even less visibility outside the crypto market.
Since their launch, spot Bitcoin ETFs have recorded total inflows of $17.7 billion, indicating a clear demand for this asset class.
On the contrary, the ETFs on Ether had a slower start, with dominant aggregate outflows in the first week of trading, partly due to the exit from the Grayscale Ethereum Trust.
Tischhauser also noted that, although there is some demand for the Solana Trust (GSOL) from Grayscale, its assets under management are significantly lower compared to the Bitcoin and Ethereum trusts.
With only 78.6 million dollars under management, the GSOL fund represents about 1.2% of the Ethereum Trust. Which still has 6.3 billion dollars of assets under management despite the ongoing exodus.
This lack of demand for altcoin ETFs has also been shared by representatives of BlackRock, who have stated that it is unlikely to see a long list of crypto ETFs in the short term.
The optimism of VanEck on future altcoin ETFs
In any case, not everyone shares a pessimistic view on future altcoin-based ETFs. Matthew Sigel, head of digital asset research at VanEck, expressed a more optimistic perspective during an interview on July 31.
Sigel stated the following:
“We do not agree with the idea that only Bitcoin and Ethereum will have ETFs. In Europe, the market already offers a variety of ETPs on cryptocurrencies, including options on single coins and baskets.”
He added that VanEck aims to lead this innovation also in the United States. On June 27, VanEck submitted an application to the SEC for an ETF on Solana.
Furthermore, the aggregated flows for spot ETFs on Ether turned positive on August 1st.
In particular with the Grayscale ETHE fund which recorded the lowest outflow so far, with 78 million dollars leaving the product, bringing the total aggregate inflow to 28.5 million dollars in a single day.
