President of ETF Store Nate Geraci predicts that an ETF issuer will file for a combined spot Bitcoin, Ethereum, and Solana ETF in the near future, as the industry is quickly moving towards index-based and actively managed crypto ETFs. This forecast comes amidst growing anticipation of the U.S. SEC potentially approving Ethereum ETFs. The Chicago Board Options Exchange (CBOE) announced that five spot Ethereum ETFs will begin trading on July 23, pending regulatory effectiveness. This follows approval of rule changes by the SEC allowing for the listing of spot Ether ETFs. The launch is subject to final approval of each fund issuer’s respective S-1 registration statements by the regulator. Most ETF issuers plan to waive or discount fees to gain an early market advantage.
Approval of crypto ETFs beyond Bitcoin and Ethereum, such as Solana, is unlikely without significant regulatory changes, according to Bloomberg ETF analyst James Seyffart. He emphasizes the need for a regulated market to monitor these assets for fraud and manipulation. However, crypto investor Brian Kelly suggests that Solana could potentially become the next cryptocurrency to have a spot ETF in the United States. In a recent episode of CNBC’s ‘Fast Money’, Kelly posed the question of who is next in the trade and suggested that Solana could be one of the big three cryptocurrencies for the current cycle. The industry is closely watching for the approval of additional crypto ETFs to enter the market.
As the number of Bitcoin wallet addresses holding BTC has been decreasing over the past month, onchain analytics firm Santiment suggests that this could actually be good news for investors. A mass liquidation of wallet addresses often indicates a potential rebound in the market. While the percentage of Bitcoin supply in profit has declined to 89.43%, other metrics point to a more optimistic outlook. CryptoQuant founder Ki Young Ju notes that over-the-counter markets are dominating centralized exchange markets, indicating institutional accumulation. Large whale wallets, including spot ETFs and custodial wallets, have acquired 1.45 million BTC this year, which is about 9% of the circulating supply. The weekly inflow to these whale entities has exceeded the total for the entire year of 2021, with an impressive 100,000 BTC flowing in each week.
The ETF industry is rapidly evolving towards the introduction of index-based and actively managed crypto ETFs, with a prediction from Nate Geraci that an ETF issuer will file for a combined spot Bitcoin, Ethereum, and Solana ETF in the near future. The launch of five spot Ethereum ETFs on July 23 by the CBOE, pending regulatory effectiveness, marks a significant step in the industry. While approval of crypto ETFs beyond Bitcoin and Ethereum faces regulatory challenges, including the monitoring of assets for fraud and manipulation, there is growing anticipation of additional cryptocurrencies, such as Solana, potentially entering the market. Investors are closely monitoring market trends and metrics to identify opportunities for potential rebounds in the market and evaluate the accumulating interest from institutional investors in the cryptocurrency space.
