ETF providers need to be selective since much of the crypto is quite questionable, says REX CEO.

Considerations for Crypto ETFs

The publisher of Crypto Exchange-Traded Funds needs to be cautious when deciding which cryptocurrencies to include in their offerings. It seems that beyond the top ten, the crypto market is, well, quite tough.

“Crypto is pretty rough under the top 10,” remarked ETF IQ on Monday. There are significant decisions that need to be made by the publisher, which can really impact the funds they generate.

Greg King, the CEO of Rex Financial, expressed that he doesn’t expect a “big explosion” in ETF applications for different cryptocurrencies, though he anticipates many funds for various coins.

ETF issuers are in a race to secure approval for their crypto funds after the Securities and Exchange Commission (SEC) adopted a more favorable stance following the success of the Spot Bitcoin (BTC) ETF under President Trump.

Rex is currently waiting on the approval for an ETF that focuses on Memecoins—cryptocurrencies that lack intrinsic value—and is linked to Bonk, official Trump, and Dogecoin.

King on Solana as a Future Stablecoin

In early July, Rex Financial launched an ETF centered on Solana (Sol). This fund offers exposure to reward staking, allowing people to earn payments by locking their tokens to support the network.

King believes Solana might be the future of stablecoins, viewing it as a story that’s been overlooked compared to Ethereum. He candidly mentioned, “When I saw people arguing that all Stable Coins are built on ETH, I thought that was a significant oversight. Solana has potential.” His comments seem to stir up some debate, as he noted that he might have made both friends and enemies with this viewpoint.

Anticipating More Crypto ETFs

King also discussed the anticipation surrounding the launch of numerous crypto ETFs in the near future, projecting something “explosive” could happen.

“In other areas of the ETF market, there’s a lineup similar to what we saw with Bitcoin ETFs, now happening with Solana,” King remarked. “The numbers are definitely on the rise.”

He further stated that Solana could be a strong candidate for spot ETFs and could serve as an interesting portfolio investment due to its competition with Ethereum and a comparatively higher staking reward.

Current Solana ETF Submitted Proposals

At present, nine issuers—including Vaneck, Bitwise, Grayscale, 21Shares, Coinshare, Canary Capital, Franklin Templeton, Fidelity Investments, Invesco, and Galaxy Digital—have proposed joint funds to create a Spot Solana ETF, with a few of them named specifically.