Analysts Expect SEC Approval of Crypto ETFs in July, Kicking Off ‘Altcoin ETF Summer’

Analysts predict that the SEC may approve several crypto ETFs next month, heralding an “altcoin ETF summer.” The focus is particularly on Solana-based funds. Major issuers are vying for approval, with optimism around a 90% chance. New basket ETFs are expected to catch investors’ attention, and there’s speculation about memecoins getting their own ETF soon.

Analysts are buzzing about the upcoming potential for crypto exchange-traded funds (ETFs) to get approved by the U.S. Securities and Exchange Commission (SEC) as soon as next month, signaling what many are calling an “altcoin ETF summer.” This could mark a significant moment for cryptocurrencies on the market, especially with funds that track broader crypto indexes potentially getting the green light.

Eric Balchunas, a senior ETF analyst at Bloomberg, shared on social media some encouraging notes from fellow analyst James Seyffart, who stated, “ETFs that track broad crypto indexes may be approved by the SEC next month.” It seems that the SEC might also prioritize decisions on Solana (SOL) and staking ETFs, with Balchunas urging investors to prepare for a surge of altcoin ETFs soon.

Numerous fund issuers, including known players like Grayscale and Bitwise, have submitted applications to introduce ETFs that encompass a mix of cryptocurrencies. The SEC will need to make a decision by July 2. Analysts are feeling optimistic about the odds, estimating a solid 90% chance of approval. Additionally, the SEC is mulling over ETFs linked to XRP and Solana, although those decisions could be pushed to later dates this year.

Duncan Moir, President of 21Shares, weighed in at the Proof of Talk’s Roadmap for Institutional Capital Inflow event in Paris. He noted that the competition to launch new crypto exchange-traded products (ETPs) is heating up. “Basket products are going to be more interesting,” he stated, suggesting that as more managers enter the market, it’s uncertain which specific ETF will dominate, making bundled options appealing.

Seyffart’s forecast that funds based on Solana would lead the charge complements recent reports indicating the SEC has requested that fund issuers preparing to launch Solana ETFs update their registration details. “Conversations around the nuances of staking Solana in ETFs are getting underway between the SEC and hopeful Solana ETF issuers,” highlights a web of ongoing discussions in the regulatory landscape.

Moreover, on June 11, ETF Store president Nate Geraci remarked on the SEC’s impending wave of approvals, hinting that this could be the crucial breakthrough necessary for major brokerages to start offering direct spot crypto trading.

In terms of novelty, Balchunas mentioned last week that there’s a promising possibility of introducing an ETF focusing on trading memecoins. To ease into that future, he suggested, “we’ll get a slew of active crypto ETFs” first, with dedicated memecoin-only funds possibly emerging by 2026. It seems the evolution of crypto products in investing is gaining speed, and excitement is building.

In summary, the anticipation for an “altcoin ETF summer” is shaping up, with the SEC poised to approve crucial crypto ETFs as early as next month. With a focus on popular altcoins like Solana, analysts are optimistic. The market trend leans towards basket ETFs, showcasing interest as a range of fund issuers jostle to hit the market. Whether this momentum leads to a new era of crypto investment remains to be seen, but the turn of events is certainly getting interesting.

Original Source: cointelegraph.com