Published on augustus 5, 2024, 12:21 am
Image source: Fox News
```json [ "TLDR: Katalin Tischhauser from Signum Bank believes it's unlikely for spot Solana and Cardano ETFs to be approved in the US due to challenges like lack of compliant trading venues. SEC requires regulated market surveillance for approval, which crypto exchanges currently lack. While VanEck is optimistic and pursuing a Solana ETF, overall interest in altcoin ETFs remains low compared to Bitcoin and Ethereum." ] ```
Katalin Tischhauser, the head of investment research at Signum Bank, has weighed in on the likelihood of spot Solana and Cardano ETFs being approved in the United States. According to her, it seems unlikely that these cryptocurrencies, along with others, will secure approval as spot exchange-traded funds due to various challenges they face.
In a recent dialogue with Cointelegraph, Tischhauser expressed doubts about altcoins such as Solana and Cardano following the path of Bitcoin and Ether as spot crypto ETFs in the US. One significant hurdle is the absence of trading venues meeting the Securities and Exchange Commission’s standards for market surveillance.
The SEC’s responsibility includes safeguarding against market abuse and manipulation. To fulfill this duty, approved products are overseen through regulated market venues like the Chicago Mercantile Exchange (CME) to ensure fair and transparent trading practices. However, cryptocurrency exchanges are currently perceived by the SEC as unregulated securities exchanges.
If regulatory concerns surrounding crypto exchanges are addressed, leading to their acceptance as surveillance markets by the SEC, more crypto ETFs could emerge. Nevertheless, Tischhauser anticipates limited demand for altcoin ETFs even if they were to receive approval.
Spot Bitcoin ETFs have seen substantial inflows since their launch in January, signaling significant interest in this asset class. Conversely, spot Ether ETFs experienced slower initial growth due to outflows attributed to shifts from Grayscale Ethereum Trust.
Notably, despite some demand indicated by the high premium on Grayscale’s Solana Trust (GSOL), its assets under management remain considerably smaller compared to Bitcoin and Ethereum trusts. This underscores a general lack of interest in altcoin ETFs according to BlackRock’s key figures.
While opinions vary on the prospects of altcoin ETFs, VanEck’s head of digital assets research holds a more optimistic view regarding their potential alongside Bitcoin and Ethereum offerings. VanEck is actively pursuing innovation in this space with plans for a Solana ETF filed with the SEC.
As developments unfold in the cryptocurrency landscape, it remains uncertain how other altcoins will fare in terms of ETF adoption compared to Bitcoin and Ether.
Original article posted by Fox News
