Following the approval of Spot Bitcoin and Ether ETFs last year, market participants are looking forward to an expanded list of crypto ETFs in the United States.
Increase in Crypto ETF Applications
According to a Reuters report, issuers like VanEck, Canary Capital, and 21Shares have submitted 16 applications for the approval of products tracking crypto indices or tokens such as XRP and SOL. This wave is attributed to two primary factors: the replacement of the SEC Chairman with Paul Atkins, potentially leading to more crypto-friendly regulations.
Trends in Existing Crypto ETF Flows
Expectations for new crypto ETFs have had mixed effects on SOL and XRP. SOL prices increased by 0.88% to $191.04, despite a 5.29% drop in trading volume. Similarly, XRP rose by 0.76% to $2.32, but trading volume fell by 31.08%. Recent significant outflows have been observed in Spot Bitcoin and Ether ETFs.
Market Impact and Expectations
The anticipated wave of new crypto ETFs could significantly influence overall market dynamics. Supportive regulations from the new SEC chairman may accelerate ETF approval processes. However, outflows from current ETFs indicate investor confidence levels in the market.
The approval of new crypto ETFs may significantly affect the market, while changing SEC leadership could foster more crypto-friendly regulations.
