CoinDesk Report:
Bitcoin surged short-term on Monday, July 1, breaking through $63,500 and gaining over $1,200 within the day. Swiss-based asset management firm 21Shares has independently filed an application aiming to list a Solana spot ETF in the United States. Wall Street giants have also taken action, with the SEC receiving an application for a Gold and Bitcoin Mixed ETF (STKD Bitcoin & Gold ETF).
21Shares Submits Wall Street Solana ETF Application
According to CoinTelegraph, the proposed fund by 21Shares will be named 21Shares Core Solana ETF and will not involve staking of SOL tokens. The proposed ETF will trade on the CBOE BZX Exchange, with Coinbase acting as the fund’s Solana holdings custodian, backed by privately insured holdings stored in independent wallets on the Solana blockchain. According to submitted documents, 21Shares’ application is contingent on Solana not being classified as a security under US law. If Solana is deemed a security by the SEC, 21Shares may withdraw its application, citing reluctance to meet additional registration requirements.
Discussions surrounding the Solana ETF have heated up following the SEC’s approval of Bitcoin spot ETF trading. With last month’s approval of 8 Ether spot ETFs’ 19B-4 filings, promotion of similar products has increased. 21Shares and VanEck remain optimistic about Solana’s ETF approval should the factors that enabled Ether’s approval by the SEC be applied.
21Shares, a Swiss company specializing in cryptocurrency exchange-traded products (ETPs), was established in Zurich in 2018. The company has issued 40 crypto ETPs listed on 13 exchanges with assets under management totaling $3.2 billion. Its most notable offering is the Bitcoin spot ETF (ARKB) in collaboration with Ark Investments, currently managing $2.78 billion in assets.
Known for its diverse crypto product offerings including ADA, ARB, AAVE, BNB, and over 30 other cryptocurrencies, 21Shares recently launched the Toncoin staking exchange-traded product (ETP), TONN, on the Swiss SIX Exchange, which returns staking rewards to investors.
As early as 2021, 21Shares launched the Solana Staking ETP in Europe, code-named ASOL, with assets under management of $810 million fully backed by physical SOL tokens. ASOL provides a staking yield of 4.44%, offering individual investors better protection than custodial options. ASOL is also listed on six European exchanges, offering investment options in USD, GBP, EUR, and CHF.
Wall Street asset management giant VanEck filed the first US Solana ETF on June 27, followed closely by 21Shares. Currently, market opinions on the likelihood of Solana ETF approval are divided. CBOE, which lists several Bitcoin spot ETFs, believes that without establishing a futures market or altering regulatory conditions, the emergence of crypto ETFs beyond Bitcoin and Ethereum is unlikely.
JPMorgan and Bloomberg are skeptical about approval, while Bernstein believes that the approval of Ether spot ETFs could pave the way for similar tokens like Solana to be classified as commodities.
Both 21Shares Core Solana ETF and VanEck Solana Trust have chosen to trade on the CBOE BZX Exchange. According to the company’s S-1 filing, the fund’s creation and redemption will be in cash, similar to other spot ETFs.
Introduction of Bitcoin & Gold Mixed ETF Application
Asset management firm Quantify Funds and ETF platform Tidal Investments jointly submitted a prospectus on June 26 to the SEC for a Bitcoin and Gold mixed ETF named STKD Bitcoin & Gold ETF. The ETF aims to provide potential complementary benefits to investors by utilizing futures products of Bitcoin and Gold, offering a more stable investment path.
According to the documents, STKD Bitcoin & Gold ETF is an actively managed ETF designed to offer investors simultaneous exposure to Bitcoin, known as “digital gold,” and Gold, a traditional safe-haven asset. The ETF seeks to reduce the impact of short-term market volatility on overall investment results by blending these two largely uncorrelated asset classes.
The operational concept involves investing in two complementary asset categories: Bitcoin, known as “digital gold,” and Gold, considered a safe-haven asset. The ETF aims to achieve $10,000 in Bitcoin exposure and $10,000 in Gold exposure for every $10,000 of assets invested. This is akin to investing $10,000 in a Bitcoin strategy fund, borrowing $10,000, and then placing the borrowed $10,000 into a Gold strategy fund.
It’s important to note that the ETF uses leverage instruments directly and does not invest directly in physical Bitcoin or Gold. Additionally, the filing indicates a projected listing date of September 9, 2024, pending approval from both the SEC and the Commodity Futures Trading Commission (CFTC), with details on the ETF’s code and any associated fees yet to be disclosed.
Bitcoin Technical Analysis
CMTrade notes that Bitcoin’s RSI is above the neutral 50 level, with MACD in positive territory above its signal line, indicating a bullish configuration.
Furthermore, the price is above its 20 and 50-period moving averages, at $61,579 and $61,208 respectively. Finally, the Bitcoin/USD trading price is above its upper Bollinger Band, at $61,909.
“$61,120 is our pivot, with preference for continuation of the uptrend as long as $61,120 holds as support.”
“Alternative scenario involves breaking below $61,120, targeting $60,150 and $59,570.”
