Analyst Predicts a Surge of Altcoin ETFs This Summer

In July, the SEC is likely to give the green light to spot ETFs based on a basket of cryptocurrencies, with a subsequent review of funds linked to Solana. This prediction comes from Eric Balchunas, a senior exchange analyst at Bloomberg.

«Prepare for a possible surge of altcoin ETFs, with Solana expected to take the lead,» he stated.

According to information from Blockworks’ own sources, the Commission has requested that potential issuers of spot SOL exchange funds submit updated S-1 forms.

Sources told the publication that the regulator promised to provide feedback on the applications within 30 days. One source suggested that after the forms are revised, the SEC could approve the products in the next three to five weeks.

Bloomberg’s exchange analyst James Seyffart confirmed that while such a possibility isn’t out of the question, he doesn’t anticipate a decision from the agency before early October.

In their note, Balchunas and Seyffart noted that the regulator may expedite the review of applications for Solana ETFs and funds with staking functionality due to Rex Financial’s attempts to launch similar products in the U.S. through unconventional means.

Upon the registration of spot SOL ETFs, a «wave» of similar products based on other altcoins is expected, according to analysts. They estimate a 90% chance of approval for instruments linked to a basket of Solana and Litecoin assets by the end of the year, while XRP funds have an 85% likelihood.

Balchunas pointed out that he does not foresee demand for these products being comparable to the interest in Bitcoin ETFs.

«For Solana, attracting a billion would be a significant win—similarly for XRP,» he commented to The Block.

To recall, the assets of BlackRock’s largest exchange fund, IBIT, have exceeded $70 billion in just 341 trading days, marking the fastest growth rate among all ETFs.