Crypto markets are anticipating a new wave of exchange-traded fund (ETF) debuts this week. Solana, Litecoin, and HBAR funds have appeared in US exchange listings, with a potential launch scheduled for Tuesday.
According to Bloomberg analyst Eric Balchunas, US exchange listing notices have been published for Bitwise’s Solana (SOL) ETF and Canary’s Litecoin (LTC) and Hedera (HBAR) ETFs. These funds are reportedly slated to go live on Tuesday.
In an X post on Monday, Balchunas indicated that Grayscale’s Solana Trust is also expected to convert to an ETF on the following day.
A crypto ETF is a fund that is traded on a stock exchange. It offers investors a way to gain exposure to digital assets, such as Bitcoin (BTC) or SOL, without the need to directly own or manage the cryptocurrencies themselves.
The approval process for crypto ETFs in US markets experienced a slowdown following the federal government shutdown that began on October 1. Despite this, the Securities and Exchange Commission (SEC) has continued to operate, albeit with limited capacity.
The SEC gave its approval for the first US spot Bitcoin ETFs on January 10, 2024. This decision paved the way for ETFs from prominent issuers like BlackRock, Grayscale, Bitwise, ARK 21Shares, WisdomTree, Fidelity, Valkyrie, VanEck, Hashdex, Franklin Templeton, and Invesco Galaxy to be listed and traded.
As previously reported, as many as 16 ETFs were queued for SEC approval in October. These ETFs were connected to various altcoins, including SOL, LTC, and Dogecoin (DOGE).
Spot Ether ETFs have seen outflows for the second consecutive week amidst a period of cooling demand.
Solana Staking ETFs
Staking, a process that involves locking up cryptocurrency to support the security of a proof-of-stake blockchain like Solana and earn rewards paid in the same token, has emerged as a significant narrative in the crypto space this year.
In July, the REX-Osprey Solana Staking ETF debuted on the Cboe BZX Exchange, marking the first crypto staking ETF to receive approval in the United States.
Grayscale recently enhanced its Solana Trust by incorporating staking capabilities. This move followed a September statement from the SEC that clarified that certain staking activities do not necessarily constitute securities offerings.
Bitwise’s proposed Solana ETF, which could receive approval on Tuesday, also includes staking features.
Thomas Uhm, chief operating officer of Jito, a Solana-based liquid staking and MEV protocol, commented that the approvals for Solana ETFs represent just the beginning of a new trend.
"We’re already working with tier 1 investment banks on products related to these ETFs and on accumulation strategies using staked Solana ETF options," Uhm stated.
The most wealthy investors in Hong Kong are planning to buy crypto, and Japan is developing its own Bitcoin plan, according to recent reports from Asia Express.