Bloomberg analysts have significantly increased the likelihood that U.S. regulators will approve a new wave of trading on cryptocurrency exchanges, pointing to a friendly stance from the Securities and Exchange Commission (SEC).
Bloomberg senior ETF analysts Eric Balknas and James Seifert said on June 20 that a wide range of crypto ETFs have a “more than 90%” chance of winning regulatory approval.
Altcoin Funds
The revised forecast follows what the pair described as a constructive argument between the SEC and asset managers, looking to expand beyond Bitcoin.
They also showed that the SEC probably considers cryptocurrencies like Litecoin, Solana, XRP, Dogecoin, Cardano, and more as commodities.
The surge in optimism comes after the SEC recently asked several publishers to pursue Spot Solana ETFs and update their filings on details of the redemption of the physical and whether staking is permitted.
The move prompted some companies that have not yet submitted applications for Solana ETFS last week.
The requested changes submitted in mid-June indicate that the SEC is actively reviewing the structure and dynamics of these funds, further supporting the expectations of final approval. The regulator is expected to respond within 30 days and will raise expectations for approval within the next 4-5 weeks.
ETF Performance
Crypto ETFs are expected to become a mainstay in the financial industry after Spot Bitcoin ETFS sets a record of capital inflows.
BlackRock’s Ishares Bitcoin Trust traded under ticker IBIT and surpassed its $70 billion worth less than a year after its launch. A consistent daily influx of products has made it one of the fastest growing ETFs in US history.
Nevertheless, similar product tracking Ethereum has slower intakes. The Ether ETF, launched last July, shows that blockchain analysis shows that many investors are leaving a loss compared to their entry price.
With Momentum Building, fund issuers, including Franklin Templeton, have submitted proposals to ETFs associated with other crypto assets such as XRP and Solana. These applications are open for public feedback as SEC is the weight of the next move.
Balchunas and Seyffart are hoping for approval, but warned that the final green light and market debut could still be months away.
It is mentioned in this article
