What to Know:
- The first U.S. spot ETFs for Solana, Litecoin, and Hedera have begun trading.
- The ETF approvals came through the SEC’s new generic listing standards.
- Analysts predict significant inflows into the new altcoin ETFs.
The U.S. crypto market has reached a new milestone with the launch of spot exchange-traded funds (ETFs) for Solana (SOL), Litecoin (LTC), and Hedera (HBAR). These products officially debuted today, marking a significant expansion beyond Bitcoin and Ethereum ETFs. The move provides investors with regulated exposure to a wider range of digital assets.
The early launch of these ETFs was triggered by a subtle but crucial change in the SEC’s language regarding listing standards, which was quickly recognized by firms like Canary Funds and Bitwise. This allowed them to proceed with their filings despite the ongoing government shutdown, showcasing the agility of the crypto market. Canary Capital led the charge with filings for Litecoin and Hedera ETFs, followed by Bitwise with its Solana Staking ETF and Grayscale with its Solana fund.
These new ETFs offer investors a regulated and accessible way to invest in Solana, Litecoin, and Hedera through traditional brokerage accounts, eliminating the need to directly hold the underlying tokens. The approvals were facilitated by the SEC’s streamlined approach, replacing lengthy individual reviews with a faster process. This efficiency allowed issuers to move forward expeditiously.
Analysts at Bloomberg and J.P. Morgan anticipate substantial inflows into these ETFs, projecting between $1 billion and $1.5 billion over the next year. Initial trading volumes have been promising, though the prices of SOL, HBAR, and LTC experienced some volatility after the launch. The successful launch of these altcoin ETFs sets the stage for further expansion in the crypto ETF market.
With the U.S. crypto ETF landscape now including altcoins, attention is shifting towards the potential approval of XRP ETFs. Multiple issuers, including Grayscale and Bitwise, have already filed for spot XRP ETFs, with Bloomberg analysts estimating a high probability of success. This signals continued growth and diversification in the crypto investment space.
Source: Original article
