The crypto community is buzzing with anticipation after Nate Geraci, tweeted that ETF issuers may apply to launch a combined spot ETF of Bitcoin [BTC], Ethereum [ETH], and Solana [SOL] in the next few months. “We’re quickly heading down the path towards index-based & actively managed crypto funds.” While the details of the issuers remain a mystery, the post has sparked speculation among market observers.
Some optimists believe that issuers might first capitalize on individual funds before moving on to combined ones, citing BlackRock’s recent addition of IBIT to other funds. Nevertheless, this might pave the way for tokenized assets, combining various cryptocurrencies also to enter the ETF arena.
However, skeptics are unsure about Solana in particular as the token’s previous enforcement actions for being an unregistered security might impede the SEC from approving any spot fund for it until legal matters are resolved, potentially taking several years. Despite the uncertainty, VanEck and 21Shares have still gone ahead to file applications to list SOL-based exchange-traded funds.
But what captured the market’s attention was the potential listing of crypto index ETFs. Not long ago, the U.S. Securities and Exchange Commission [SEC] confirmed receipt of the 19b-4 application for the Hashdex Nasdaq Crypto Index US exchanged traded fund, signaling a new era in the evolution of the crypto market in the United States. The fund will hold both spot Bitcoin [BTC] and Ethereum [ETH].
Market experts believe that the need for individual spot bitcoin/ether/etc ETFs might gradually wane down as more major brokerages roll out crypto trading. The key will be integrating user experience in terms of accounts, statements, etc. In the long term, the ETF space will be index-based & actively managed crypto funds.
Brokerages to Move Beyond Spot ETFs
One notable example is Grayscale’s Privacy ETF, an index-based fund that aims to track firms involved in data security & protection, cybersecurity products and services including blockchain-based technology solutions, etc. It would also hold the Grayscale Zcash Trust, seen as a strategic move by Grayscale to expand its exchanged trade funds lineup.
This comes amidst the upcoming Spot Ethereum ETF which is set to commence trading on July 23, SEC insider sources stated. As shared by Bloomberg analyst Eric Balchunas, the SEC has instructed the prospective issuers to submit the final S-1 form this week and apply for effectiveness after the market closes next Monday. This process will enable them to begin trading on Tuesday, July 23.