Why could the crypto Solana and other ETFs face difficulties?
The post Why could the crypto Solana and other ETFs face difficulties? appeared on BitcoinEthereumNews.com.
Crypto news: Katalin Tischhauser of Sygnum Bank has expressed doubts regarding the spot ETFs of Solana and Cardano, aligning with other experts, while VanEck maintains a more optimistic view on the subject. Let’s see all the details below. Katalin Tischhauser: the doubts about Solana and Cardano spot ETF funds in the crypto field As anticipated, Solana, Cardano, and other crypto have little chance of obtaining approval as spot ETFs in the United States and may encounter further difficulties in attracting investors. Katalin Tischhauser, head of investment research at Sygnum Bank, recently shared her skepticism about this possibility. According to Tischhauser, the main obstacle for the approval of crypto ETFs in the United States is the lack of trading platforms that the Securities and Exchange Commission (SEC) considers adequate for market surveillance. The SEC has the duty to protect against market abuses, frauds, and manipulations, and currently considers criptovalute exchanges as “unregulated securities exchanges”. The availability of CME futures for Bitcoin and Ethereum has represented a temporary solution. However, until these issues are resolved and the SEC accepts platforms like Coinbase as surveillance markets, the creation of additional crypto ETFs will remain uncertain. A weak demand for altcoin ETFs Even if altcoin ETFs were approved, Tischhauser believes that the demand would be limited. According to her, besides Bitcoin and Ethereum, there would not be a significant demand for ETFs on other cryptocurrencies. The recognition of the name Ethereum is already lower than that of Bitcoin, and other cryptocurrencies like Solana have even less visibility outside the crypto market. Since their launch, spot Bitcoin ETFs have recorded total inflows of $17.7 billion, indicating a clear demand for this asset class. On the contrary, the ETFs on Ether had a slower start, with dominant aggregate outflows in the first week of trading, partly…
Filed under: News - @ August 5, 2024 8:26 pm