Crypto markets are poised for a potential surge in exchange-traded fund (ETF) offerings this week, with Solana (SOL), Litecoin (LTC), and Hedera (HBAR) funds potentially debuting on Tuesday. According to Bloomberg analyst Eric Balchunas, U.S. exchange listing notices have surfaced for Bitwise's Solana ETF and Canary's Litecoin and Hedera ETFs, indicating a possible launch tomorrow.
In a post on X (formerly Twitter) on Monday, Balchunas noted that Grayscale's Solana Trust is anticipated to convert to an ETF the following day. These launches signify an expansion of crypto ETFs beyond Bitcoin and Ethereum, venturing into the altcoin market.
An ETF is a type of investment fund that trades on stock exchanges, providing investors with exposure to digital assets like Bitcoin or Solana without the need to directly own or manage the cryptocurrencies.
Canary has reportedly submitted 8-As applications for its Litecoin and Hedera ETFs, while Bitwise has filed a similar application for its Solana ETF. Despite the ongoing U.S. government closure, these ETFs have the potential to launch this week, potentially alongside Grayscale's Solana ETF.
The approval process for crypto ETFs in the U.S. markets had been largely stalled since the federal government shutdown on October 1st. However, the Securities and Exchange Commission (SEC) is still operational, albeit with limited capacity. It is worth noting that the SEC approved the first U.S. spot Bitcoin ETFs on January 10, 2024, which paved the way for ETFs to be listed and traded by companies like BlackRock, Grayscale, Bitwise, ARK 21Shares, WisdomTree, Fidelity, Valkyrie, VanEck, Hashdex, Franklin Templeton, and Invesco Galaxy.
As many as 16 ETFs connected to various altcoins, including SOL, LTC, and Dogecoin (DOGE), were reportedly awaiting SEC approval in September.
Notably, Bitwise's Solana ETF is a staking ETF. Staking, which involves locking up cryptocurrency to help secure a proof-of-stake blockchain like Solana and earning rewards in the same token, has emerged as a prominent trend in the crypto space this year. In July, the REX-Osprey Solana Staking ETF was launched on the Cboe BZX Exchange, marking the first crypto staking ETF approved in the United States. Grayscale also recently incorporated staking into its Solana Trust, following the SEC's statement in September clarifying that certain staking activities do not constitute securities offerings.
The crypto ETF momentum seems to be accelerating, with multiple altcoin-linked products gearing up to launch this week. Senior ETF analyst Eric Balchunas stated that listing notices confirm that Bitwise's Solana Staking ETF, along with Canary's Litecoin and Canary HBAR ETFs, are scheduled to commence trading tomorrow. Grayscale's Solana fund is expected to convert the following day, assuming there is no last-minute intervention from the SEC.
