- Bitcoin and Ethereum ETFs have seen significant success, accumulating billions in assets
- Fund managers are now looking to introduce XRP and SOL ETFs to the market
- The appointment of Paul Atkins as SEC Chair could pave the way for smoother regulatory guidelines
Bitcoin and Ethereum ETFs have proven an underlying success, a year after its upbringing. Since its debut early last year, Bitcoin exchange-traded funds have accumulated over $106 billion in BTC, while Ethereum ETFs amassed over $12 billion in Ether.
Now, the logical next step for fund managers is to introduce new exchange-traded funds to the market, pegged to other well-known and prominent altcoins. Recent reports from Yahoo Finance confirm that some of the heavy hitters in the ETF market like Grayscale, VanEck, Bitwise, and 21Shares have already applied with the SEC to create XRP and SOL ETFs.
Now more than ever, the materialization of a SOL-based ETF seems possible. While a year ago fund managers faced incredible resistance from the U.S. Securities and Exchange Commission—many anticipate a completely different perspective.
Paul Atkisn In The House
The vast majority of cryptocurrency investors see Donald Trump as a much more crypto-friendlier option in the white house. Throughout the campaign period, the Republican recurringly emphasized how he intended to make the U.S. the “crypto capital of the world”.
Trump also promised to fire the current SEC Chair Gary Gensler “on day 1”. However, Gensler himself has already declared he’ll be stepping down from the position on January 20th. To replace Gensler, the President-Elect has already appointed a new SEC Chair: Paul Atkins.
Atkins was a former Commissioner of the U.S. Securities and Exchange Commission during the Bush administration—and became known for reducing regulatory burdens for financial institutions during his tenure. He was also directly involved in a crypto-lobbying group by the name of “Token Alliance”.
Once he takes office as the next SEC Chair under the Trump administration, everything points to a commission that will provide clearer and smoother regulatory guidelines, potentially paving the way for a Solana ETF.
A SOL ETF Could Be Worth Billions
Head of Digital Assets Research at VanEck Matthew Sigel recently shared on Twitter his predictions for how much a Solana ETF could be worth, if the future SEC approves the requests.
In the post, Sigel drew a comparison of how Bitcoin and Ethereum ETFs were able to make up a large quantity of each currency’s market capitalization. For Bitcoin, the $ 108 billion ETP assets totaled 6% of Bitcoin’s market capitalization, while ETH ETFs make up 3% of Ether’s market cap.
Following this logic, exchange-traded funds that expose investors to $SOL could see up to $6 billion of new net assets and solidify itself as the direct Ethereum competitor in the market.
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