Topic: After the Ethereum ETF(s), which altcoin will be next? (Read 597 times)

I have missed some news about potential altcoin ETFs:

- Canary Capital has filed a S-1 for a Litecoin spot ETF in the US.
- There are also three applicants for a Ripple (XRP) ETF: Canary Capital, 21Shares and Bitwise, see here. (Spanish)

Under the Trump administration there is maybe a higher likelihood that one of these will be approved, see also this Bloomberg article.

So in the US, we have now applicants for Solana (in the US and in Canada by 3iQ), XRP and Litecoin (only in the US).

The Brazilian Solana ETF is trading since August 29 (Spanish) under the ticker QSOL11 at B3 Exchange in Sao Paulo.  So technically we now have a winner for this thread, although I'm not totally sure if it's a spot ETF.

I'll keep the thread open so we can speculate here which will be the next US altcoin ETF. The poll was renewed.

Maybe with the meme hype coming down from SOL and going to TRON and TON, they will come up with something else to surprise us

In my opinion, SOL will make progress in the future, although there are doubts about achieving it, but over time, success can happen at any time, especially good performance is needed, from all sides, and ETFs with their different uses are an option.

Well, demand for privacy coins is there definitely, if you follow the developments at exchanges like Exch for example, where they had to increase the fees for BTC -> XMR exchanges because otherwise they run out of Monero. As discussed in the Monero thread, XMR was a very good investment if you bought it just after the delisting at Binance. It was at $108 and now it's at $160 again. In the past months only memecoins offered a better return, and often not even these.

So the idea for such a "DeFi Monero product" would simply be that there may be investors in countries where exchanges are not permitted to offer Monero who want to follow its price. They could then buy a "pegged Monero version" on Ethereum or another chain. As this "pegged XMR" would not have any privacy coin features, they would not be affected at all by the regulatory restrictions.

In theory I could even imagine that a Monero ETF could also be interesting for real-world financial companies in countries with less strict regulations. For exactly the same reasons as those I mentioned for a "DeFi synthetic XMR": allowing people to invest in a "hot" coin who don't want to have to reccur to overseas anonymous exchanges or P2P. In the US or Europe, however, I think this is delusionary

On Ethereum? You mean a tokenized version of privacy coins, right? I don't think such a thing will be a big hit. Especially when there's little demand for privacy coins. Making a tokenized version pegged to the value of on-chain XMR or GRIN is not feasible, imo. I mean, what kind of privacy does the Ethereum protocol have? If ETH had ZKPs (Zero Knowledge Proofs), it would have been another story.

Point being, there is (and will never be) no need for spot ETFs of privacy coins. I think after Solana ETFs get the "green light" from the SEC, Litecoin ETFs will come up next. LTC used to be marketed as "Silver to Bitcoin's Gold". So it should only be a matter of time before BlackRock and similar companies show interest in it. I guess "Wall Street" decided to take crypto very seriously. As long as decentralization emerges victorious, nothing else matters.

I'm not exactly happy about it, but it is to be expected, taking into account the way the current economy works. Financial institutions will always try to profit from attractive assets, so they will happily try to sell you financial products based on them. We can't do much to prevent that.

I would not like that a really large supply (let's say 20% or more) of all BTC or other decentralized coins. However, for me there are some differences regarding the type of financial product.

In general, I've a more favourable opinion about spot ETFs, because of their well-known advantage that legally the investors are the owners. Spot ETFs have a relatively low potential for the issuers to manipulate the market, as they are not only heavily regulated, but also sell a product which is almost identic (with the exception of fees). So if one actor misbehaves, it is likely that the investors will simply change to another ETF. Additionally the risk for a crypto crash triggered by bankruptcies is lower than with ETNs and other ETPs.

I have already written in other threads that I see no inconvenience thus for these products to exist as long as spot ETFs are the most popular ones and the supply owned by them is only a relatively small fraction, and as the "core values" of Bitcoin (above all), like censorship resistance, are respected by the community. No ETF issuer will then be able to manipulate the chain. (With governments, the story is slightly different imo).

It's also true that in the case of coins with a heavy premine like Solana, there is already a financial institution who owns a really large supply of their coins: often it's called a "Foundation" or "Association". It's basically a bank managed by the owners. So in the case of these coins, financial products paradoxically can contribute to decentralization, because they create some more strong actors or holders, diminishing the absolute power of the founders a bit.

In general I agree. But I could imagine synthetic DeFi products like a "Privacy coin ETF" (Monero + Dash + ARRR + Grin etc.) on Ethereum or so. Of course these are not regulated, at least for now, so they're OT here

Solana will be the next coin that will attract institutional investors. If Ethereum ETFs prove to be a huge success. Just you wait and see. Afterwards, "Wall Street" will pursue an XRP ETF, a Litecoin ETF, and so on. These investment products are a great way to help attract huge capital into crypto assets. But terrible for decentralization, imo.

Are you okay with idea of big financial institutions holding a large portion of the circulating supply? If so, then you're not into crypto because you believe in its potential to change our world for the better (by eliminating the middleman). You're in it just to get filthy rich. I'd say around 90% of the people have this mindset. Money goes above all else. At least, we know good coins like Monero and Grin won't have an ETF. Why would they? After all, governments don't like privacy coins. This will serve as an escape route from ever-increasing centralization in crypto land. Wishing the best of luck for ETH and the likes.

Well, we have very likely a winner, and it's not exactly unexpected: Solana yesterday got its first ETF approved!

It's however not in the US, but in Brazil. Will be issued by a company called QR Assets and trade on B3 exchange.

When trading will start is still not sure, because the B3 exchange will still have to approve the product. So in theory still another coin could win the race, perhaps in a country with a faster approval process, but it's unlikely.

More info in Brazil’s Securities and Exchange Commission Approves Solana-Based ETF

Some will ask: why Brazil? Well, Brazil was actually one of the first countries approving ETFs for cryptocurrencies, since 2021 Bitcoin and Ethereum ETFs from issuer Hashdex are trading there.

However, they seem to be not spot ETFs in the US sense, because futures can also form part of the assets, so probably the Solana ETF will also not be a "pure" spot ETF.

I largely agree, however the ETFs in the case of Bitcoin also drive interest of "everyday people" into the crypto space again, like one can see for example in a Google Trends query that in early 2024 when the ETFs in the US got approved, the search interest for "buy bitcoin" was much higher than normally.

My general opinion is that the ETF influence is neutral. They benefit "Big Money" more than the Average Joe, but on the other hand, Average Joe got another opportunity to enter the crypto space relatively early due to the way the "attention game" works. And financial products in general tend to benefit the elites, not the Average Joes, so the Bitcoin ETFs are nothing special either.

It's interesting to speculate what could really happen in this case.

On one hand, you already have some Solana-based financial products. The ETC Group Physical Solana is perhaps the closest one to an ETF, and I don't remember hearing news about them halting the trading when Solana had outages.

But on the other hand, an ETF legally has to be always 1:1 backed as the coins are the property of the customer/investor, and thus in these situations they probably can't offer new shares, at least if the outage takes more time than a few hours. While the ETC group product also advertises itself as being 1:1 backed, the coins are property of the custodian, not the buyer. So legally I imagine it's easier to simply continue to offer the product to new buyers and taking the risk temporarily.

Of course it's possible that Solana fixes its problems until this ETF is approved (if it is) in 2025 or so. But it's a risky move, I agree.

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Regarding the question of the poll, currently there are no other news about other altcoin ETFs. All "news" about Ripple, Doge, LTC, Chainlink and so on I have reviewed are pure speculation.

"Wall Street" knows what game it's playing at. After all, crypto is where the money is. First it was the Bitcoin ETFs, then the Ethereum ETFs, and now Solana ETFs. Institutional investment companies will then move on to Litecoin, Ripple (XRP), and other cryptocurrencies with a large market cap. Does it really matter what they do? Who will ultimately benefit from this move are the "Elites". Not everyday people. In fact, ETFs will make crypto more centralized. Institutions will now hold most of the circulating supply, allowing them to manipulate the market as they wish.

You can bet Solana ETFs will be a major disaster if another network outage takes place. Trading will halt for a while, resulting in a temporary plunge in market price. VanEck should've waited until Solana was stable enough to make its move. But money talks, right? If by any chance developers fix Solana's inherent issues (which I doubt), then nothing should stop the coin from going to the moon. It survived the FTX crash, so anything's possible. Let's see how big of a success Ethereum ETFs will be. If all goes well, altcoin season will arrive faster than we've thought.

Ngl, LINK ETFs are not coming anytime soon. A month ago, my stance on Solana etfs were net negative but now that I think of it, it certainly can get there. Sometime this year, solana was comfortably sitting as the 3rd most biggest crypto and for a project with many big players and  millions of users, it might get the chance even if I doubt it. Imo, the next altcoin ETFs are going to come much later; down the road. Solana, LINK, and others are just not ready yet.

Quick question: Do you think SEC will approve Polkadot ETFs now that some details have been revealed about how the polkadot treasury is getting squandered? That's what I thought. Solana too has its problems.

I think this condition gives a positive sentiment but they still have control over it with the crypto ETF outflow continuing of course there is a lot of speculative pressure if there is pressure on the SEC, I think Solana has the potential to go there because between SOL and ETH which is likely to give Injection of funds with short term and it provides space although there is a price appreciation zone but it is attached to it but I think Solana will do better in the future.

Some of the asset managers have already submitted for SOL ETF and i am pretty sure it is only because they wants to be the first mover. I really doubt that SOL ETF will be approved. In my opinion, LINK is the suitable candidate for the possible ETF approval after ETH. SOL's demand and volume is fake mostly. On the other hand Link is going to be the universal gas token for the tokenized industry. If SOL ETF got approved other layer 1 like DOT, TON, KASPA can be the next candidate.

Arguably the growth and innovations in solana does justify the ETF and compensate for its weak point like the one probably you mentioned, there has been many cases where solana is having power outage, but i suppose there's ongoing solution already being tested.

what entice me is the recent implementation of Solana's blinks (https://solana.com/docs/advanced/actions) which allows user to trade solana token from their social media, though it can be double edged sword, but they are rather adamant in pumping out innovations it seems, so some big companies sees the positive thing in that is to be expected. also, the fact that solana is the coin that gained massively in the early bullrun means it is a good enough coin to attract investor, this probably the key reasoning why these companies willing to file ETF for solana. I mean if compared to other altcoin, it does make sense doesn't it? the only coin that's above solana in term market cap that got no ETF yet is BNB yet this coin always being called out as centralized and owned by binance, so there's no possibility of ETF for this coin and the next best option is SOL.

I am not sure if SOL would work though, feels like it is not going to end up working all that much. Don't get me wrong, it may not be all that crazy to speak but at the same time we are talking about something that will get some time to adjust. SOL is a bit more centralized, and there is a team that can freeze it anytime they want, which they have done before.

I do not know if there should be ETF of something that is heavily centralized like that. Sure they do not revert or anything or steal, but they still have some control over it and I dislike that idea in an ETF. I do not mind it when it is crypto, I can buy SOL directly to invest, but when we are talking about getting an ETF of it, I feel like that is not a good idea.

There are news for this thread:

Today, VanEck filed for a Solana ETF in the USA.

On June 20, 3IQ filed for a Solana exchange traded product in Canada, but it seems to be an ETP, not a spot ETF (so investors have an additional counterparty risk).

This does not mean that we have a winner though. Technically not even the US Ethereum ETFs are completely approved (although the Hongkong and Bermuda ETFs are).

PS: I wonder what happens with an ETF if Solana network collapses.

Bitcoin and Ethereum happens to be the most popular coin in the crypto space.And currently Ethereum is the leading altcoins,and your question is,After the Ethereum ETF(s), which altcoin will be next?I think Solana and BNB,the coinmarketcap has listed it that these two coins also have potentials but not as Bitcoin and Ethereum.Most Bitcoin enthusiast may want to invest on altcoins and if it's not Ethereum, Solana and BNB they don't see any other altcoins worth investing because they find these three altcoins reputable and trustworthy.

I would say 99%. As I wrote in the first post, the 19b-4 filings from the Ethereum applicants are approved, which do however not register the definitive financial products (the ETFs themselves) but authorize rule changes for the exchanges where they will trade.

But the S-1 forms, which register the product (ETF) itself, should be approved at most in a few months, more likely in a few weeks. Here there's some speculation about a potential date (Bloomberg expert Eric Balchunas says it could be around July 4).

The Ethereum spot ETFs in the other countries (Bermuda, Brazil and Hong Kong/China) are of course already trading some time, so the thread title is not wrong

I dunno if it's really about "negative"/"positive". It's the interpretation about the Howey test applying to ETH or not. Here's a quite good article with a bit of depth, arguing that the ICO ETH tokens may have been "securities", but as now ETH has become an utility token and the ICO is long over, this does no longer apply, and PoS in the opinion of the writer doesn't change that. So this does actually not mean that you can now launch a new crypto ICO and then it will magically escape the "security" categorization. ETH has only chances to escape it because the ICO was long ago.

There's of course a lot of speculation if there was political pressure to the SEC of course but there's nothing proven afaik. There's also still the theory that the S-1 approval could be delayed several months until the SEC concludes the investigation if ETH is a security or not, but I think this possibility is quite low.

I think there will be a possibility for the Solana ETF to be approved after Ethereum but remember that ETF approval takes a long time like that of Bitcoin and Ethereum in which Bitcoin ETF has been approved but it becomes possible after a long period.

Solana is getting more and more successful and is considered more successful after Bitcoin and Ethereum so in my opinion Solana has greater possibility for ETF approval. Solana has been performing well for a long time and its success is real but many people are still in doubt about Solana success so it is a personal matter but I think Solana will become better in the future.

It may not be a robust Blockchain, but it's still the top smart contract platform after Ethereum. Investors are interested in Solana, despite its inherent issues. With the upcoming Firedancer node upgrade, network outages will become a thing of the past. At least, that's what the community hopes for.

As for XRP, I think it'll have a high chance for an ETF approval now that the doors were opened for ETH. The latter was often flagged as a "security" by the SEC. If it got the green light from the regulating entity, what makes you think the same won't happen with XRP? If giants like BlackRock and VanEck show interest in XRP ETFs, I don't see why it can't happen in the first place.

And Litecoin is as close to Bitcoin in terms of economics and network structure (often named "Silver to Bitcoin's Gold"). So the cards are on the table for a possible ETF approval in the US. I know LTC isn't as active as other blockchain projects, but it's still one of the fastest and cheapest cryptocurrencies in the world. Its latest addition is the Mimblewimble privacy protocol. People haven't noticed it's true potential yet. But they will sooner or later. Just keep buying, and holding, and forget about the rest.