Altcoin ETFs Set to Triple, Predicts Bloomberg Analyst

Bloomberg’s senior ETF analyst, Eric Balchunas, made a bold prediction recently, stating that unless a significant market collapse occurs, the approval of altcoin-related exchange-traded funds (ETFs) could cause a surge in the crypto market. According to Balchunas, there are currently 14 altcoin-related ETFs awaiting the green light from the US Securities and Exchange Commission (SEC). These ETFs include funds offering exposure to Solana (SOL), XRP, Hedera (HBAR), Litecoin (LTC), as well as baskets of assets and concurrent exposure to Bitcoin (BTC) and Ethereum (ETH).

Furthermore, Balchunas anticipates that the roster of altcoin ETFs will triple in volume within the next two months. This prediction comes in the wake of an increasingly favorable environment for cryptocurrency since the 2020 US elections.

Following President Donald Trump’s electoral victory, ETF Store CEO Nate Geraci optimistically forecasted that several spot crypto ETFs would get listed. Geraci suggested that many issuers were well-prepared for the election outcome, stating, “No downside to getting aggressive now.”

In line with Geraci’s prediction, three new ETFs have been registered by asset managers since his statement. On November 12, Canary Capital filed for an HBAR ETF, a move that surprised numerous market analysts. The surprise was primarily due to the expectation that issuers would opt for more notable cryptocurrencies among the 50 largest by market cap.

Bitwise also made a significant move, registering a SOL trust in Delaware on November 21. Just five days later, the NYSE filed to list Bitwise’s mixed BTC and ETH ETF.

Bloomberg ETF analyst James Seyffart has also weighed in on the matter. Seyffart believes that Solana-related ETFs will likely receive SEC approval within two years. However, he warns that the current administration could easily overlook these ETFs, as was the case in August when the Cboe withdrew the 19b-4 Form filing to list VanEck and 21Shares’ Solana ETFs.

Meanwhile, the Litecoin ETF filed by Canary in October appears to have a higher likelihood of approval. Alex Thorn, head of research at Galaxy Digital, told CryptoSlate that the LTC launch is typically seen as fair, given the absence of a pre-mine or token sale. Despite the SEC’s position remaining somewhat ambiguous, Thorn believes that it is unlikely that the regulator will label LTC as a security.

In conclusion, the potential approval of these altcoin-related ETFs could herald an exciting time for the crypto market. However, as always in the world of finance and investment, only time will tell.

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