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
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
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$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
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$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.
