Source: Cointelegraph Original: "{title}"
According to Bloomberg analyst Eric Balchunas, over 70 cryptocurrency exchange-traded funds (ETFs) will undergo review by the U.S. Securities and Exchange Commission (SEC) this year. These proposed ETFs cover a wide range of holdings, including various assets from altcoins to meme coins to derivative instruments.
Eric stated in a post on the X platform on April 21, "From XRP, Litecoin, and Solana, to Penguins, Doge, and 2x Melania, it’s all there. It’s going to be a crazy year."
As institutional investors grow increasingly optimistic about cryptocurrencies as an asset class, these funds are planning to launch.
According to a report released in March by Coinbase and EY-Parthenon, over 80% of institutions indicated plans to increase their allocation to cryptocurrencies by 2025.
However, analysts warn that approval for ETFs to launch in the U.S. does not guarantee widespread adoption, especially for those funds holding less popular altcoins.
Eric Balchunas remarked, "Getting your token ETF'd is like a band uploading their song to all music streaming services."
"This doesn’t guarantee anyone will listen, but at least it puts your music on the platforms where most listeners are."
Katalin Tischhauser, head of research at Sygnum Bank, told Cointelegraph that she expects cumulative inflows into altcoin ETFs to reach hundreds of millions to $1 billion, far below that of spot Bitcoin funds.
Funds holding Bitcoin (BTC)—the first spot cryptocurrency approved for listing in ETF form in the U.S.—attracted over $100 billion in net assets last year.
However, analysts suggest that ETFs providing structured investments in cryptocurrencies like Bitcoin and Ethereum (ETH) using options and other derivatives may gain more institutional favor.
Jeff Park, head of alpha strategies at Bitwise Invest, stated last September that options on spot cryptocurrencies offer investors numerous potential portfolio strategies, which could catalyze "explosive" price increases for digital assets like Bitcoin.
Options are contracts that grant the holder the right to buy or sell the underlying asset at a specific price.
On April 21, ARK Invest increased its exposure to staked Solana (SOL) in its existing two ETFs. The asset management company stated that this marks the first time U.S. investors can access spot SOL through an ETF.
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