The probability of US regulators approving a wave of crypto exchange-traded funds (ETFs) is now a close to certainty, signaling a continued pro-crypto shift on the Securities and Alternate Fee (SEC), in accordance with Bloomberg analysts Erich Balchunas and James Seyffart.
In a social media submit on Friday, Seffart stated he and Balchunas have raised their odds for the overwhelming majority of crypto ETF approvals to “90% or increased,” citing “very optimistic” engagement from the SEC.
The analysts additionally recommended that the SEC “possible” views cryptocurrencies resembling Litecoin (LTC), Solana (SOL), XRP (XRP), and Dogecoin (DOGE) as commodities — a designation that may place them exterior of its instant jurisdiction.
Seyffart famous that the timing of approvals and the launch of spot merchandise stays unclear. He speculated the method may take a number of months and should prolong past October.
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Success of Bitcoin ETFs sparks trade race to listing altcoin funds
Asset managers are looking for to duplicate the success of the spot Bitcoin (BTC) ETFs, which noticed demand far exceed expectations within the first 12 months, culminating in probably the most profitable US ETF launch of all time.
BlackRock’s iShares Bitcoin Belief, which trades below the ticker IBIT, has been probably the most profitable product. In June, it surpassed $70 billion in property after recording 31 straight days of inflows. As Balchunas famous, IBIT reached that milestone in simply 341 days.
Nonetheless, Bitcoin’s success could also be troublesome to duplicate, given the lukewarm demand for Ether (ETH) ETFs since they launched final July.
Though ETF inflows have improved in latest months, Glassnode reported that by Could, the typical ETH ETF investor remained “considerably underwater.”
Whereas demand for different crypto property may finally outpace Ether, altcoins are unlikely to erode Bitcoin’s dominance within the ETF market anytime quickly.
Nonetheless, buyers are preserving a detailed eye on a number of proposals, resembling Franklin Templeton’s XRP and SOL ETFs, which have been just lately opened for public feedback by the SEC.
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