The first SOL ETF was submitted for approval in the United States, and it is interesting to note whether other issuing institutions will immediately follow suit. It is initially believed that this ETF may not have a chance to be launched until 2025, provided that there is a new management at the White House and the SEC at that time. However, even so, it cannot be guaranteed that it will definitely be launched.
01. “Bitcoin Bull”
After the spot ETF was approved, BTC, as a representative of digital assets, became the first target to “run the logic” in the industry. The Bitcoin spot ETF provided Wall Street with a regular channel for allocating crypto assets, bringing a large amount of off-market funds into the crypto market. The key points of Bitcoin’s rise can be seen from the fact that the surge from $25,000 to a new high of $69,000 was almost all driven by the ETF, whether it was due to a lawsuit victory or fake news, the news has always been a stimulus for the market.
02. “BlackRock Wants, BlackRock Gets”
If one insists on finding a reason to start this round of bull market, it must be BlackRock. In the context of a deep bear market and high-pressure regulation in the industry, BlackRock’s ETF single-handedly reversed the situation in the crypto market. After the Bitcoin spot ETF was launched, IBIT was also the strongest performer with the best liquidity. Last week, HODL15Capital listed the top ten companies holding Bitcoin globally, with BlackRock’s IBIT ranking first with 305,614 BTC.
There is a saying on Wall Street: “BlackRock Wants, BlackRock Gets.” As a financial giant that manages $100 trillion in assets, it seems that the SEC also has to give way to BlackRock. What many people fail to see is that the launch of the Bitcoin spot ETF may just be an appetizer for the financial giants to enter the tokenized world.
03. “Altcoins, Can ETF Funds Cover Them Too?”
Whether there will be another altcoin bull market has been a topic of discussion in the industry for the past six months. On the one hand, the large volume of VC funds and the lower-than-expected entry of new retail investors make it difficult for funds to accommodate new coins and old tokens that are still alive in the market, resulting in valuation increases in the primary market. Secondly, due to the application saturation in the last bull market, the “overload” of block space led to VC funds being mainly deployed in the infrastructure field during the bear market, resulting in a lag in the development of the application layer that is most visible to users, presenting a “narrative poverty” problem when the market suddenly enters a bull market.
However, the new developments in ETH and SOL spot ETFs this month bring a renewed and clearer logic to attracting and creating liquidity in the crypto industry. ETF funds will not only be exclusive to Bitcoin, but can also cover altcoins.
The question now is whether capital markets consumers will pay for cryptocurrencies other than Bitcoin. In the short term, it may be difficult, as the world’s general understanding of cryptocurrencies is still mostly focused on Bitcoin, and it will take some time to digest concepts such as smart contracts, Ethereum, and Solana. However, this is where institutions like BlackRock come in (packaging crypto indexes).
In conclusion, regardless of whether the SOL ETF is approved or how the ETH ETF will perform in the future, the logic and trend of the ETF bull market seem to be unstoppable.
Source: https://www.theblockbeats.info/news/54010