An Exchange Traded Fund (ETF) is an investment fund that builds a portfolio of assets and then issues its own securities linked to those same assets.
According to CoinMarketCap, in just 6 months after launch, US spot BTC-ETFs have accumulated more than 880,000 BTC. And 13 of the 25 largest US hedge funds have invested in BTC-ETFs. This financial instrument proved to be in demand. And now investors are looking forward to the emergence of new crypto ETFs on the market.
What crypto ETFs can we expect in the future?
There’s a lot of gossip and speculation around this topic. But let’s consider only the most realistic possible assets for ETFs in sight in the near future.
🟠ETH-ETFS
The next crypto ETF is expected to be the ETH-ETF.
On the evening of May 23, the SEC approved Forms 19b-4 for ETH-ETFs, which include offerings from BlackRock, Fidelity, Grayscale, and others. However, for these products to begin trading, their S-1 registration statements must become effective, which has not yet happened.
ETFs based on airtime will likely appear on the US stock exchange at the end of the summer.
They are expected to attract significant inflows. Analysts make different estimates, but in general the forecasts are optimistic:
- K33 Research forecasts an inflow of between $3 billion and $4.8 billion in the first 5 months after launch.
- Steno Research expects an inflow of $15 billion to $20 billion in the first 12 months.
- Standard Chartered makes the boldest forecast: $15 billion to $45 billion in the first year.
🟠SOL-ETFS
SOL-ETFs are next in line.
VanEck and 21Shares filed for Solana-based cash ETFs in late June and early July. But the SEC hasn’t started analyzing them yet. Most likely, the process will be similar to that for BTC and ETH. To wit:
- Issuers will submit applications (this has already happened).
- The SEC will review them and provide recommendations.
- Then the Commission will send the applications back for review, and the issuers will make various changes.
- And finally, official approval and the start of trading.
However, there may be a time lag between approval and the start of trading, similar to the ETH-ETF.
🟠XRP-ETF
Ripple is the next contender for a slice of the pie in the realm of crypto ETFs.
Ripple CEO Brad Garlinghouse predicts the emergence of an XRP spot ETF by 2025. His prediction indicates a significant development of the cryptocurrency market, especially XRP.
However, there have been no requests from issuers yet, and XRP-based ETFs are only in the pipeline. The problem is the protracted litigation between the SEC and Ripple Labs. The SEC accuses the company of selling XRP as an unregistered security.
Experts predict an increase in the liquidity and stability of XRP after its introduction into investment funds. However, it should be remembered that this is only a prediction, and the actual development of events may differ under the influence of various cryptocurrency market factors.
Other possible crypto ETFs are also being actively discussed online: ADA, DOT, NEAR and many other tokens are being discussed. But so far, these are just speculations and wishes of individual traders.
However, the effect of the news on crypto ETFs is hard to ignore — the market is literally exploding with purchases. So why miss out on these movements? You can open a position long before the launch of a new ETF. Movo has already collected all these coins, which can be traded with up to 50x leverage. At the same time, control your position with convenient Stop Loss and Take Profit orders.
Conclusion
Overall, the future of cryptocurrency-based spot ETFs looks promising. New products covering a wide range of cryptocurrencies are expected to emerge in the coming years. This will attract more investors and contribute to the growth and development of the market.
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