2 hours ago
Bitwise’s Matt Hougan says a much straightforward SEC listing process could pb to much crypto ETFs, but that doesn't mean they'll each pull money.
The US Securities and Exchange Commission streamlining the support process for crypto exchange-traded products (ETPs) whitethorn trigger a surge of caller offerings, but that doesn’t warrant their success, a crypto enforcement warns.
“The adoption of generic listing standards — which could travel arsenic aboriginal arsenic October — volition apt usher successful a ton of caller crypto ETPs. This is intuitive, but it’s besides backed up by ETF history,” Bitwise main concern serviceman Matt Hougan said successful a study connected Monday.
However, Hougan warned that the motorboat of a crypto ETF should not beryllium confused with renewed hype for cryptocurrency.
Crypto ETFs’ “mere existence” nary warrant of success
“The specified beingness of a crypto ETP does not warrant important inflows. You request cardinal involvement successful the underlying asset,” Hougan said.
“I fishy ETPs built connected assets similar Bitcoin Cash volition person a hard clip attracting flows unless the plus itself finds caller life,” helium added.
However, Hougan emphasized that launching ETFs positions the products to rally erstwhile “fundamentals commencement to turn,” arsenic ETFs marque it easier for accepted investors to allocate superior to crypto.
Sygnum’s probe head, Katalin Tischhauser, told Cointelegraph in February that there “is each this frothy excitement successful the marketplace astir these ETFs coming, and nary 1 tin constituent to wherever important request is going to travel from.”
Two caller altcoin exchange-traded funds are expected to launch successful the US this week, tracking XRP (XRP) and Dogecoin (DOGE).
The Altcoin Season Index reached its highest people successful 90 days connected Sunday. Source: CoinMarketCapOn July 3, the US’ archetypal Solana (SOL) staking ETF ended its debut trading time with $12 cardinal successful inflows, which Bloomberg ETF expert James Seyffart said was a “healthy commencement to trading.”
Currently, the SEC reviews spot crypto ETFs connected a case-by-case basis. Issuers indispensable record elaborate proposals showing that the underlying marketplace is sufficiently liquid and resistant to manipulation, among different requirements.
New process would spot compliant crypto ETFs “virtually guaranteed”
The reappraisal tin instrumentality up to 240 days, with nary warrant of approval.
Related: Spot BTC ETFs pull $642M, ETH adds $406M amid ‘rising confidence’
Under the caller process that the SEC is moving on, applications would beryllium “virtually guaranteed” if they conscionable precise requirements, Hougan said. “It’s besides fast: Applications would beryllium approved successful 75 days oregon less.”
Bitfinex analysts said connected Aug. 26 that altcoins whitethorn not spot a broad, outsized rally until the support of crypto ETFs that springiness investors exposure further down the hazard curve.
Magazine: Meet the Ethereum and Polkadot co-founder who wasn’t successful Time Magazine
English (US) 