The U.S. Stock Exchange and the Securities Commission (SEC) are in the final deliberation stage for funds cited in the Stock Markets (ETFs) of Solana (SOL) and Litecoin (LTC).
As the term gets closer and closer, the expectation that both products will acquire a green light arouses euphoria among investors.
If the SEC approves these regulated products, Sol and LTC could potentially gain direct access to Wall Street and increase awareness among institutional investors. Moreover, like traditional stock purchases, their operations facilitate the incorporation of capital into the markets of these cryptocurrencies.
But let’s go partially to analyze what happens to each asset. In the case of Litecoin, the SEC has time until October 2nd to approve or reject proposals presented by the Canary capital and Grayscale.
ETF approval has a direct effect (which can be positive or negative) on the citation. The capabilities of these financial instruments require the companies that manage them to acquire the underlying assets to support their actions, as explained in encryption.
This means that if there is high demand for ETFs, managers will have to go to the market to buy more LTCs. This is based on the laws of supply and demandthe price of the asset increases.
According to Bloomberg Intelligence analysts James Seifert and Eric Barknath, there is a 95% chance that Litecoin will be the next ETF approved by the SEC.
For Solana, it must be clear that on July 2nd, the futures ETF debuted on the basis of this asset managed by Rex Shares and Osprey Funds.
The background known as Rex Osprey Sol Staking, identified by the SSK symbol, has begun operation with the Chicago Options (CBOE). This ETF offers investors the possibility to invest directly in the price of the sun. Additional income through staking of the cryptocurrency itself. This is the first financial product of its kind with this mechanism.
However, the SEC still needs to respond to requests from Franklin Templeton, Grayscale, Vaneck, 21Shares, Canary Capital, and Bitise. The agency will have time until October 10th.
In this case, Bloomberg Intelligence Analysts predict that SOL’s ETFs will be eligible for approval after LTC.
In both cases it is important to make it clear that the SEC can make decisions before the formal conditions mentioned above.
