Yesterday evening, the application for the Solana ETF caused SOL to suddenly surge by a few points, leading the previously declining market to move upwards. The Solana ETF came “earlier expected”, but its approval rate is still unknown. Regardless of the outcome, this is to excite the dormant crypto community, especially given that this round of market can be described as an ETF bull market”Bitcoin Bull”
After spot ETF approval, BTC as a representative of digital assets became first logical subject in cryptocurrency circles to “run through”. Bitcoin spot ETF provided Wall Street with formal channel for allocating crypto assets and brought substantial off-market funds into the crypto space. From key points Bitcoin’s rise, it can be seen that most of its surge from twenty-five thousand to sixty-nine thousand dollars was driven by ETFs. Whether due to litigation victories or false reports, news has always stirred up market sentiment.
In comparison, altcoins are struggling during their chase after’s rise. Significant positives within Ethereum’s ecosystem such as Cancun upgrade were overshadowed Solana made a dazzling debut with meme coins; however, presales and celebrity coins continue to disrupt market trends. Further contributing was pumpfun’s rise which further divided attention away from memes and onto high-profit-making scams while pushing encrypted VCs into opposition with retail investors.
Meanwhile, ecosystems led by Bitcoin Rune continued their strong development streak. Due to the lack of a clear business model and asset logic, many believe that this cycle belongs to Bitcoin’s “lone bull”.
Leading the charge is BlackRock
one had to find a reason for the start of this bull market, it would beRock. In a market deep in bearishness and facing high-pressure regulation, BlackRock’s ETF single-handedly turned around the crypto landscape.
Following the launch of Bitcoin spot ETF, IBIT also demonstrated exceptional performance with superior liquidity. Last week,ODL15Capital listed BlackRock’s IBIT as holding 305,614 BTC as top among ten global companies currently holding Bitcoin.
As giant controlling assets worth $10 trillion USD, SEC seems to have to give way before BlackRock.
The tokenization of US Treasury has seen significant growth this year. Tokenized RWAs (including government bonds, corporate bonds and cash equivalents) have grown by 35% over these two months Leading this growth is Blackrock’s BUIDL which has increased by 65% since the beginning of this quarter driving total tokenized government bond market value beyond $1.5 billion USD. During that same time period Ondo Finance one of DeFi protocols locked-in value grew from $221 million USD in April to $507 million USD.
Less than a month after BUIDL was introduced into staking an issue-laden Ethereum spot ETF dramatic turnaround directly passing its application.
On May 24th ETH spot ETF which had been unimpressive with only a 7% pass rate experienced an overnight surge in approval rate reaching up to 75%, propelling ETH price past the $3800 USD mark.
With three successive steps from Blackrock over past year unraveling many industry difficulties caused by SEC new position movements are being taken within crypto-logic/crypto-terminology mainstreaming process.
Altcoins: Can they withstand ETF funds?
The discussion over whether there will be an altcoin bull market has been ongoing for half past year in cryptocurrency circles.
Firstly VC funding size is large while new retail investors’ entrance falls short suggesting difficulty in supporting new coins older coins still surviving on markets resulting in project valuations rising mainly occurring at primary markets after tokens are listed having high FDV along low liquidity post-listing situations. Secondly due to block space ‘overload’ caused by application saturation during previous bull markets VC funds deployment during bearish periods mainly concentrated on infrastructure fields causing delays evident development at user perceived app-layer when sudden market trends come “narrative poverty” appearsCoincidentally, the concern lies in whether the money coming in through Bitcoin ETF will flow into altcoins.
During the previous market cycle, crypto institutions used BTC as collateral and leveraged it to invest in altcoin markets, thus the overall crypto market value and creating altcoin bull market. However, this logic changed in this cycle. Spot ETFs are custodied by institutions and cannot be leveraged, effectively cutting off a significant source of funding for thecoin market.
However, recent developments with ETH and SOL spot ETFs this month have a renewed and clearer logic for attracting liquidity to the crypto industry. ETF funds will not exclusive to Bitcoin; they can also cover altcoins.
The question that remains is whether market consumers will buy into cryptocurrencies other than Bitcoin. In the short term, it may pose difficulties as general recognition of cryptocurrencies still revolves around Bitcoin. Concepts as smart contracts, Ethereum Solana, etc., require some time to digest. However, this presents an opportunity for institutions like BlackRock.
On the other hand, traditional entering the space may gradually out many native crypto companies from their markets – especially roles such as market makers and OTC traders that institutional players can bring capital but also for business opportunities.
In conclusion,
whether or not SOL ETF is approved or how ETH ETF performs in the future
the logic and trend of an ETF bull market seem unstoppable.
In later analysis pieces,
we will explore leading in other tracks.
If you’re interested,
feel free to follow along.
I’ll also periodically organize some cutting-edge information and project reviews.
Welcome fellow crypto enthusiasts to join us on this exploration.
Feel free to comment or ask questions if you have any.
