Bloomberg analysts Erich Barschnas and James Seifert believe that U.S. regulators are likely to approve a new wave of cryptocurrency exchange-traded funds (ETFs), suggesting a shift towards a more pro-cryptocurrency stance from the Securities and Exchange Commission (SEC).
In a recent social media post, Seifert mentioned that they have raised their estimated likelihood of approvals for Crypto ETFs to “over 90%,” highlighting very positive engagement with the SEC.
The analysts also noted that cryptocurrencies like Litecoin (LTC), Solana (SOL), XRP, and Dogecoin (DOGE) are considered “highly likely” for inclusion.
Seifert pointed out that the timing of the approvals and the launch of these products is still uncertain, speculating that the whole process could extend over several months, possibly delaying beyond October.
The success of Bitcoin ETFs leads to industry competition for altcoin funds
Asset managers are looking to replicate the success achieved by Spot Bitcoin (BTC) ETFs, which resulted in the release of what is now the most successful ETF in U.S. history, as demand exceeded expectations during its first year.
BlackRock’s iShares Bitcoin Trust, traded under the ticker IBIT, stands out as the leading product, having surpassed $70 billion in value in June after enjoying 31 consecutive days of inflows. As noted by Balkunas, IBIT reached this impressive figure in just 341 days.
However, with the strong demand for ether (ETH) ETFs since its launch last July, it might be challenging to replicate Bitcoin’s success.
While ETF inflows have shown improvement lately, GlassNode reported in May that average ETF investors were still “essentially underwater.”
Even though interest in other crypto assets might eventually outweigh that for ether, it seems unlikely that altcoins will quickly diminish Bitcoin’s lead in the ETF market.
Still, investors are attentive to various proposals, including Franklin Templeton’s XRP and Sol ETF.
