Last month, the United States Securities and Exchange Commission (SEC) granted approval for the launch of exchange-traded funds (ETFs) designed to mirror the price movements of Bitcoin. This ETF launch could act as a spark, increasing interest in and confidence in alternative cryptocurrencies like altcoins. It also represents a significant milestone in mainstream financial products.
As a result, investors who are becoming more confident in the cryptocurrency space are expanding their investment horizons by looking into alternative coins. Spot ETFs for ETH and bitcoin have grown in popularity as engaging investments. Following the successful introduction of Bitcoin ETFs last month, supporters of the cryptocurrency space are now anxiously awaiting the SEC’s approval of further altcoin ETFs.
Altcoin ETFs: Perspectives from Crypto Connoisseurs
Cathie Wood, CEO of ARK Invest, holds a different view. According to Wood, the SEC will never approve ETFs that go beyond Bitcoin and Ethereum.
“We would be shocked if the SEC approved anything other than Bitcoin and Ethereum.”
Regarding ETFs backed by cryptocurrencies, the SEC has consistently taken a strong stand. Shortly after endorsing the introduction of Bitcoin ETFs, SEC chair Gensler expressed his doubts about the same. We did not approve or support bitcoin, even though we authorized the listing and trading of specific spot bitcoin [exchange traded product] shares today. Subsequently, he described bitcoin as a “volatile, speculative asset that’s also used for terrorist financing and ransomware.”
On the other hand, The SEC may soon allow the introduction of altcoin ETFs, according to well-known podcaster in the field, Lark Davis. According to Davis, the cryptocurrency community will be able to quickly record the introduction of ETFs backed by Solana, Dogecoin, and XRP.
He later said that the rumors surrounding the introduction of Ethereum ETFs as the newest hot thing are to blame for Ethereum’s possible spike above $4,000 by May 23rd. Moreover, he described how the introduction of a possible ETH ETF might encourage other cryptocurrency ETFs to dominate the market.