If Ethereum Gets Approval, These Could Make You Rich: Here Are the Coins Where Money Can Flow!

The analyst explained which altcoins money could flow into if spot Ethereum ETFs are approved.

Ilan Solot, Head of Digital Assets at Marex Solutions, spoke about the potential impact of spot Ethereum exchange-traded funds (ETFs). He predicted that if approval comes from the United States, money could flow into Solana and Ethereum-based altcoins.

However, the analyst stated that the market has not yet priced the spot Ethereum ETF approval and stated that after the approval comes, many short positions will be closed, and those that are not closed will explode due to the short squeeze created by the rises.

He argued that Ethereum ETF approval could also attract people to Ethereum who have so far invested not in Ethereum but in Solana-based projects where interest is high:

ETH has been a de facto funding token of this bull cycle, similar to the low-yielding Japanese yen in the foreign exchange market. With renewed hopes for a Spot ETH ETF, investors will look to cover Ethereum shorts against Solana and other tokens. Unwinding of short positions will occur over time and will enable Ethereum to perform better in the short term.

Noelle Acheson, author of the Crypto Is Macro Now newsletter, which offers a different perspective on the subject, stated that both Solana and the Ethereum ecosystem will receive money flows that will support each other, not compete with each other:

I don't see Spot Ethereum ETFs pulling funds from Bitcoin ETFs. There may be some turbulence, but the approval of spot Ethereum ETFs is more likely to expand rather than drive mainstream demand, as many investors view Ethereum ETFs as a diversifier of the crypto portion of portfolios.

Acheson noted that overall crypto interest will continue to boost both.