The U.S. Stock Exchange and the Securities Commission (SEC) currently have over 70 applications on the table to launch funds cited in cryptocurrency bags (ETFs).
This “heat” for launching ETFs after Gary Gensler, the former president of the SEC. since then, Companies are proposing Listar ETFs from Altcoins It is integrated as Solana (Sol) or XRP, and even memokines such as “serious”, Dogecoin (Doge).
This impulse also addresses the new favourable climate of the cryptocurrency that was created when Donald Trump arrived at the White House.
As reported by Cryptootics, throughout the presidential election, Trump has expressed his position in favour of the sector and has committed to creating a friendly regulatory framework to promote industry growth.
And so far, it has assumed its capabilities as of June 5th, and has adhered to some of those promises, including the decision to appoint the SEC head, praised by Trump to recognize that digital assets and other innovations are key to making the United States a better country, and the decision to appoint Paul Atkins.
Taking this scenario into consideration, coin investors such as XRP, Solana, Litecoin (LTC), etc. They rub their hands and look forward to these ETFs leaving the market as soon as possible.
However, there are some interesting questions here. Ethereum’s native cryptocurrency, Etf AlCaé de Ether (ETH), performed much lower than Bitcoin (BTC).
Since its launch in July 2024, ETH Financial Instruments has recorded money tickets for $248 million, and has not had a positive impact on prices, as seen in the following image (Blue Line).
At the time of his debut, ETH was cited for $2,510. Today, it costs $1,800.
However, the next question has not been raised yet. Why does Altcoins claim to ETFs if the ether did not rise in prices?
In this regard, Eric Baltunas, Analyst Bloomberg Intelligence, He said: “To have your currency become an ETF is like being in a band and your songs are added to all music streaming services.
This means that if your digital assets have their own ETFs, there is more exposure between institutional investors and wider recruitment through managers of these funds. If they succeed, this creates an upward impulse for their quote.
Otherwise, what’s happening with ETH funds could happen.
To answer the above questions, analysts at token dispatch sites have shown the difficulties financial products faced based on Ethereum’s native currency, such as High Commission.
For example, Grayscale Ethereum Trust (ETHE) has a 2.5% fee and has been competitive these days against cheaper options such as BlackRock (0.25%).
Another problem is that the value proposition is too complicated compared to BTC’s narrative as “digital gold” and recruiting between advisors and investors.
“Ethereum’s value proposition covers the intelligent contracting platform, Defi liquidation layer, the spine of the NFT market, and potentially staffed asset generators, and features that are not available in current ETFs,” explains the analyst.
For this reason, they believe that “this complexity creates marketing challenges,” and “recruitment is affected if a financial advisor cannot easily explain an investment paper to a customer with one or two phrases.
They also warn that the fact that these instruments do not allow staking is a barrier, A function that distinguishes ETH from Bitcoin.
We submitted applications to the SEC to incorporate staff into ETH Financial Instruments as Cryptootics, reported by companies such as Grayscale, 21Shares and Fidelity.
Staking, which consists of depositing ETH into intelligent contracts in exchange for rewards, could be the next big step in these funds.
What’s interesting for token dispatch analysts is that “catalysts have failed not because the ETF is an ETF, but because it is a bad alternative to native ETH. Comparing the zero profitability of ETHE fees of 2.5% with the simple ownership of ETH, the decision becomes mathematically clear.”
In other words, Ethher’s ETF could be “Pirator of Sacrifice” paving the way for the second, more successful wave. Furthermore, they say:
“Current ETF failures do not demonstrate that cryptocurrency ETFs do not work. But they are essential feedback from the market that improves the next generation of capabilities.”
Token Dispatch Site Analyst.
So… why bet on the launch of other cryptocurrency ETFs?
ETFs are not guarantees of rising prices for underlying assets; The enthusiasm for launching similar products based on Altcoins shows no signs of cooling.
This paradox reacts to a series of factors that weigh more than the warning signs left by the ETH case.
According to a report by Coinbase and Ey-Parthenon, roughly 83% of institutional investors plan to increase their cryptocurrency allocation this year, with many pointing to more than 5% of their managed assets.
In this regard, token dispatch experts argue that “each altcoin also offers a differentiated value proposition that can resonate more clearly than the complex Ethereum narrative.”
These proposals include the XRP approach, which seeks to position the “ultragrape” speeds in the Solana network and the XRP approach as “bank cryptocurrency.” Though adoption is limited in the banking sector.
Another issue that needs to be considered is the potential growth of cryptocurrencies with low market capitalization.
“While BTC and ETH can provide stability, a $1 billion market capitalization limits bullish potential. Medium capitalization could generate more significant yields when achieved through widespread adoption that could attract investors focused on growth that has lost BTC’s initial profit,” the experts emphasize.
Furthermore, JP Morgan Analyst predicts that SolanaETF can attract $3,000 and $6,000 million in its first yearthe XRP ones will win between $4,000 and $8,000 million.
Using these discussions, you can go back to the title question. Can XRP and Solana ETF avoid the fate of ETH? The answer is yes.
This is primarily because if JP Morgan’s forecast is met, these products can have a much stronger impact on price and market dynamics than etheric ETFs.
This is because the ETF structure itself requires the issuing company to acquire the underlying assets to properly support the funds.
As a result, if demand rises, these companies will have to go to the market to buy.
You need to see what happens with XRP, SOL, and other Altcoin ETFs. The truth is that despite the fact that the latest precedents are not encouraging, investors’ enthusiasm does not stop growing.
Meanwhile, the SEC has yet to provide a clear response to an avalanche of applications on the table.
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