ETP: Exchange-traded patience – Blockworks
In the wake of the 2024 launches of bitcoin and ether ETFs in the United States, various proposals for funds holding solana, XRP, and even HBAR have emerged. Additionally, there have been discussions about funds that would diversify across multiple cryptocurrencies.
Canary Capital Group recently put forth a litecoin ETF plan which they have since revised. Nasdaq has submitted a 19b-4 form on behalf of Canary, a move that some interpret as a positive indication for the future of the product. Canary CEO Steven McClurg expressed confidence in the likelihood of more spot crypto ETFs entering the US market this year, although he refrained from providing specific details.
While optimism regarding the introduction of new spot crypto ETFs is widespread among industry experts, the mounting stack of proposals awaiting approval from the SEC prompts speculation about the timeline for their approval. With a new administration in the SEC, questions arise about whether the approval process will take weeks, months, or years.
Bloomberg Intelligence’s James Seyffart opined that a litecoin ETF might receive approval before solana and XRP offerings, citing the SEC’s stance on litecoin as not falling under the category of a security in contrast to solana. The SEC’s legal disputes with Coinbase, Binance, and Ripple have influenced its regulatory approach to different cryptocurrencies.
ETF.com analyst Sumit Roy highlighted that a litecoin ETF could have a smoother approval process due to its straightforward use case and track record. Despite potential approval in 2025, Roy emphasized the SEC’s concerns regarding market manipulation and custody risks associated with all crypto ETFs.
Apart from the recent introduction of US spot crypto products, the seventh anniversary of the Amplify Transformational Data Sharing ETF (BLOK) coincides with ongoing interest in crypto equity ETFs among advisors. The growth of BLOK’s assets under management, nearing $1 billion, indicates its significance as a vehicle for exposure to the crypto space.
Looking ahead, the composition of BLOK’s holdings may evolve as new crypto- and blockchain-related companies enter the public markets. Galaxy, Robinhood, Core Scientific, Coinbase, MicroStrategy, and Metaplanet are currently among BLOK’s top holdings. Metaplanet, a Japanese firm akin to MicroStrategy, plans to increase its bitcoin holdings to 10,000 BTC this year.
As the crypto landscape continues to evolve, the approval of new ETFs, the performance of existing funds, and the entry of new players into the market will shape the future of crypto investments in the US.
