The U.S. Securities and Exchange Commission (SEC) may be on the brink of approving several altcoin ETFs, which could significantly impact the cryptocurrency market.
Chances of Approval for Crypto Index ETFs
ETF analysts James Seyffart and Eric Balchunas from Bloomberg have expressed strong confidence that the SEC is nearing the approval of a new category of crypto index ETFs. These funds would include a diversified mix of altcoins, giving investors broader market access in a single product. Bloomberg estimates the approval chances at around 90%, with July 2 noted as a potential decision date.
Solana Likely as a Primary Candidate
Among the altcoins being considered, Solana is emerging as a prime candidate for approval. Fund managers like Grayscale and Bitwise have already filed proposals that include SOL. Early conversations with the SEC reportedly suggest that staking could be integrated into these ETFs, opening up new opportunities for yield generation.
Potential Ethereum and Memecoin ETFs
Ethereum is also in the spotlight. Although spot Ethereum ETFs were approved earlier this year, they excluded staking functionality, which may soon change. Both Seyffart and Balchunas believe that Ethereum staking ETFs are next in line after Solana, allowing investors to earn passive income through staking rewards. The idea of a memecoin ETF, focusing on assets like DOGE or PEPE, is also being discussed, with potential emergence by 2026 amidst stringent regulatory scrutiny.
If the SEC proceeds with these approvals, it could mark a pivotal moment for the integration of cryptocurrencies into mainstream finance, with major brokerages potentially offering broader crypto access directly on their platforms.
