tl;dr
Bloomberg analysts Eric Balchunas and James Seyffart have raised the likelihood of U.S. regulators approving new cryptocurrency ETFs to 90% or higher, citing a more favorable stance from the SEC. The SEC has requested amended filings from issuers pursuing spot Solana ETFs, signaling active review an...
Bloomberg analysts Eric Balchunas and James Seyffart have raised the likelihood of the U.S. Securities and Exchange Commission (SEC) approving a wide array of cryptocurrency exchange-traded funds (ETFs) to 90% or higher. This optimistic outlook stems from recent constructive discussions and progress in regulatory reviews.
The SEC has requested amended filings from issuers seeking spot Solana ETFs, asking for more clarity on aspects such as in-kind redemptions and staking permissions. This move signals active assessment by the SEC, which is expected to respond within 30 days, increasing the probability of approvals within the next four to five weeks.
The analysts note that the SEC seems to classify cryptocurrencies like Litecoin, Solana, XRP, Dogecoin, and Cardano as commodities rather than securities, reducing the commission’s direct oversight over these assets. This regulatory stance encourages issuers to expand their ETF offerings beyond Bitcoin.
Bitcoin ETFs have demonstrated strong performance and popularity in the market, with BlackRock’s iShares Bitcoin Trust surpassing $70 billion in assets in less than a year. However, Ethereum-based ETFs have experienced slower growth, with many investors yet to break even. In light of this momentum, several fund issuers, including Franklin Templeton, have filed proposals for ETFs linked to other cryptocurrencies such as XRP and Solana.
While the approval of these new crypto ETFs appears likely, Balchunas and Seyffart caution that the official green light and product launches may still be several months away. The industry anticipates that crypto ETFs will soon become a significant facet of the financial market landscape.