Ether and Solana Overtake Bitcoin in Crypto Bets Amid ETF Hype

Ether and Solana Overtake Bitcoin in Crypto Bets Amid ETF Hype

Ether and Solana Overtake Bitcoin in Crypto Bets Amid ETF Hype: The price of Solana rose at the highest pace in over a month,
while Ethereum has climbed 51% since the beginning of the year, compared to Bitcoin’s 45% increase.
Ethereum and Solana have started to steal the spotlight from their bigger sibling, Bitcoin,
as excitement over the launch of exchange-traded funds (ETFs) in the U.S. shifts to the smaller cryptocurrencies.


Contents

Submission of Investment Fund Applications

Spotlight on Bitcoin at the Beginning of the Year

Approval by the U.S. Securities and Exchange Commission

Future Prospects for Ethereum Funds

Speculations on ETF Approval Supporting Ethereum

Bitcoin ETFs in the U.S.

U.S. Authorities’ Stance on Cryptocurrencies

Ambiguity Around Ethereum’s Classification

Solana Classified as Unregistered Securities

Performance of Cryptocurrencies in the Markets

 

 

 

Submission of Investment Fund Applications

Solana’s price rose rapidly in over a month after investment firm VanEck filed to launch a cryptocurrency ETF.
Additionally, Ethereum has outperformed Bitcoin since the beginning of 2024 as final approvals for ETFs focusing on Ethereum investment draw near.

 

Spotlight on Bitcoin at the Beginning of the Year

At the beginning of 2024, the spotlight was entirely on Bitcoin when the first spot ETFs launched in the U.S. with the largest digital assets.
Bitcoin ETFs launched by companies such as BlackRock and Fidelity Investments attracted significant inflows,
driving Bitcoin’s price to a record high of $73,798 in March, but demand and price have since declined.

 

Approval by the U.S. Securities and Exchange Commission

Last month, the U.S. Securities and Exchange Commission (SEC) approved exchange proposals to list spot ETFs dealing with Ethereum.
Some reports indicate that final approvals for these funds may be issued next week.

 

Future Prospects for Ethereum Funds

Analysts have begun to abandon modest expectations for demand for ETFs that include Ethereum,
the second-largest cryptocurrency, which is less widespread than Bitcoin.
According to “Galaxy Digital Holdings” and “Fundstrat Global Advisors,” U.S. ETFs could see net inflows of $5 billion in the first five months.

 

Speculations on ETF Approval Supporting Ethereum

In a research note, Sean Farrell, head of digital asset strategy at “Fundstrat,” wrote:
“Investors are adopting very bearish expectations regarding the imminent launch of Ethereum ETFs.”
He expects these ETFs to be boosted by hedge funds attempting to profit from the price difference between spot Ethereum and futures contracts.

Ethereum’s price has risen 51% since the beginning of the year,
surpassing Bitcoin, which saw a 45% increase. Solana’s value,
known by the “SOL” ticker, increased by 754% over the past 12 months before Thursday’s gains, ranking fifth among digital assets.

 

 

 

 

 

Bitcoin ETFs in the U.S.

Since their listing in January, Bitcoin ETFs in the U.S. have attracted $14.5 billion in net inflows.
Analysts at “J.P. Morgan Chase” estimate that potential Ethereum portfolios could attract
between $1 billion (in modest estimates) and $3 billion in net inflows during the remainder of 2024.

 

U.S. Authorities’ Stance on Cryptocurrencies

The SEC unexpectedly shifted its stance towards approving spot ETFs that track Ethereum prices after reluctantly allowing Bitcoin ETFs following a court ruling in 2023.

 

Ambiguity Around Ethereum’s Classification

While Bitcoin is viewed as a commodity, the SEC, chaired by Gary Gensler,
states that most other digital currencies are unregistered securities that should be subject to its regulation.
Gensler’s stance on Ethereum and whether it is considered a security remains ambiguous.

 

Solana Classified as Unregistered Securities

However, Solana is one of more than 12 currencies the SEC has classified in various lawsuits as unregistered securities.
This raises doubts about whether the regulator will allow the launch of ETFs tracking Solana.
VanEck’s application to launch an ETF does not guarantee SEC approval.

 

Performance of Cryptocurrencies in the Markets

Bitcoin’s price rose about 0.5%, trading at $61,700 at 12:10 PM on Friday in Singapore.

Ethereum’s price climbed to $3,453, while Solana’s price dropped 1.5% to $147.

 

 

Ether and Solana Overtake Bitcoin in Crypto Bets Amid ETF Hype