US elections are a ‘huge variable’ for Solana ETF approval
The approval of spot Ether ETFs has opened Pandora’s box for another altcoin ETF. Solana, XRP, Chainlink or Dogecoin could be next, but is the crypto market overly optimistic? The prospect of another altcoin exchange-traded fund (ETF) in the United States could depend on political changes following the upcoming 2024 U.S. presidential election.
This is despite the U.S. Securities and Exchange Commission (SEC) giving the green light for fund managers to list spot Ether ETH tickers down $3,688 ETFs on May 23.
Although SEC Chair Gary Gensler admitted that “it will take time” until the Ether ETFs are launched, speculation about the next crypto ETF has already begun, with Solana’s SOL tickers down $160 emerging as a top contender. Despite the enthusiasm for more crypto ETFs, Ophelia Snyder, co-founder and president of 21.co — a sponsor and subadviser for ARK Invest’s spot Ether ETF — told Cointelegraph that expectations for new altcoin ETFs shouldn’t be too high.
“It’s unlikely that the approval of ETH will result in a large wave of approvals.” However, as the spot Bitcoin BTC tickers down $69,628 and Ether ETFs demonstrated, high demand from institutional investors for altcoin ETFs could compel ETF issuers to file applications.
In an April report, CoinShares — an alternative asset manager specializing in digital assets — found that hedge funds and wealth managers have significantly increased their altcoin holdings, specifically Solana.
Snyder highlighted the significant interest in 21.co’s Solana exchange traded-product (ETP) on European exchanges, stating that it has nearly $990 million in assets under management.
The SEC has not shown any signs of embracing other cryptocurrencies for future ETFs. Approving spot Ether ETFs was already a hard pill to swallow for the commission.
An altcoin ETF may be even more difficult for the SEC to accept; however, a number of different factors could change that.
If Bitcoin returns to the price it had been hovering around for the previous two days before the slight dip, it would wipe out a considerable number of short positions.
Should Bitcoin quickly rebound from its recent dip to its June 6 price of $71,000, over a billion dollars worth of short positions will be liquidated.
On June 7, Bitcoin BTC tickers down $69,659 dropped 3.33% to $68,507 before slightly recovering above its key level of $69,000 amid broader macroeconomic uncertainty triggered by the United States Employment Situation Summary Report, which revealed more job growth than expected during May.
Along with Bitcoin’s price decline, Ether ETH tickers down $3,690 also saw a 3.58% decline over the 24 hours, and several altcoins, such as Solana’s SOL tickers down $160 , Dogecoin DOGE tickers down $0.15 and Pepe PEPE tickers down $0.000013 , took a hit of 5.61%, 8.70% and 9.99% respectively, according to CoinMarketCap data.
The market plunge led to a $409.51 million wipe out of short and long positions across the board, according to CoinGlass data. Of that, $56.71 million were long positions in Bitcoin.
If Bitcoin returns to $71,000, approximately $1.38 billion in short positions will be liquidated. Source: CoinGlass However, two days before Bitcoin’s price decline, on June 5 and 6, it hovered between $70,000 and $71,662. Many traders were hopeful it might inch closer to its all-time high of $73,679.
Bitcoin lingers lower following a “doubly strange” U.S. trading session, with BTC price support in question. Bitcoin circled $69,000 on June 8 as traders licked their wounds from a snap sell-off. Data from Cointelegraph Markets Pro and TradingView showed Bitcoin price behavior stabilizing into the weekend. The largest cryptocurrency had endured sudden volatility at the prior Wall Street open thanks to what was labeled “schizophrenic” United States employment data. This was then compounded by a rout in altcoins, which came courtesy of market reactions to a livestream by pseudonymous investor Roaring Kitty. BTC/USD saw local lows of $68,450 on Bitstamp, while largest altcoin Ether briefly fell below $3,600. Responding to the past 24 hours’ events, trading firm QCP Capital called the U.S. session “doubly strange.” “It was confusing enough to trigger a risk-off ahead of US inflation numbers and FOMC next Wed,” it wrote in part of its latest update to Telegram channel subscribers. QCP referenced next week’s macro data prints, which include the Consumer Price Index (CPI) along with the Federal Reserve meeting to determine interest rate policy. “Followed by a Roaring Kitty live stream which had almost a million viewers, during which GME stock price crashed,” it continued. “It was probably not a coincidence that Alts and Memecoins started collapsing as well with over $40 billion wiped in market cap.” The firm nonetheless saw local lows on BTC and ETH as “a good opportunity to buy the dip” based on future Fed moves potentially benefiting risk assets. Eyeing key levels, the crypto market analysis looked to the monthly open around $67,500 as the level to hold as support should weakness continue. “Lots of coins are at do or die levels IMO, these are the types of trades I like,” popular trader Crypto Chase wrote in part of one of his latest posts on X. “If we lose all these levels, we lose the current HTF bullish bias to a degree IMO. BTC holding 64-65K would be the last hope before destruction.” $BTC $ETH #Binance200M #altcoins