Wall Street Leads Crypto: Solana and Ethereum ETFs
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The next stage of the bull market appears to be spearheaded by Wall Street, with significant developments in the realm of cryptocurrency ETFs. The journey toward making Ethereum ETFs a reality has encountered another twist. The U.S. Securities and Exchange Commission (SEC) recently returned the S-1 forms to prospective Ethereum ETF issuers with light comments. These issuers have been instructed to address the comments and refile by July 8, marking another step in the intricate process of launching these ETFs.
The Path to Approval
Initially, there were reports suggesting that the ETFs could go live as early as July 4, but this is no longer feasible. Issuers are awaiting a clearer timeline from the SEC, which will be provided once a deadline for the final filings is set. SEC Chair Gary Gensler has hinted that Ethereum ETF approvals could happen "sometime over the course of this summer," but a specific date remains elusive.
The S-1 forms are part of a two-step process for the ETFs to go live. The first step saw the approval of the issuers' 19b-4 forms in May. Unlike the 19b-4 forms, S-1 filings do not adhere to a specific deadline, adding to the uncertainty of the Ethereum ETFs' launch timeline.
Several major financial institutions have filed updated versions of their S-1 spot Ethereum ETF applications, including:
- Bitwise
- Fidelity
- VanEck
- Franklin
- 21Shares
- Grayscale
- BlackRock
These issuers are now waiting for the SEC's feedback to move forward with the next stage of filings.
Solana ETF on the Horizon
Investment manager VanEck recently filed to list the first U.S. exchange-traded fund (ETF) tied to the spot price of Solana, following regulatory approval for a similar Bitcoin product. Meanwhile, on June 28, 21Shares submitted an S-1 application for a spot Solana ETF. The proposed 21Shares Core Solana ETF will trade on the Cboe BZX Exchange, with Coinbase serving as the custodian for the fund's Solana holdings. These holdings will be insured privately and kept in segregated wallets on the Solana blockchain.
21Shares, headquartered in Zurich, Switzerland, is a trailblazer in the crypto ETF arena. The company already offers futures Ether and both spot and futures Bitcoin ETFs in the United States in partnership with ARK Invest. Recently, 21Shares applied for a spot Ethereum ETF after ARK Invest ended its partnership for that application. The SEC approved the ARK 21Shares spot ETH ETF 19b-4 filing on May 23, with separate approval required for the S-1 filings.
ETFs allow investors to gain exposure to cryptocurrencies without directly holding them. This market has garnered significant interest from major financial institutions, including BlackRock, which operates the largest spot Bitcoin ETF. The increasing focus on Ethereum and Solana ETFs suggests that the next leg of the bull run could be more concentrated, led by large-cap coins set to be included in financial products.
Market Reactions and Future Outlook
Despite recent selling pressure, Ethereum has fared relatively well compared to Bitcoin, with ETH falling below $3,400—a 3.5% weekly drop versus Bitcoin’s 5.8% decline. Technical charts indicate that the ETH/BTC pair is on the verge of a significant breakout, aligning with the anticipated launch of the spot Ethereum ETF.
As the process unfolds, investors and market watchers alike are keen to see how these developments will shape the future of cryptocurrency investments. The approval and launch of these ETFs could signal a new era of institutional involvement and broader adoption of digital assets. It also means the next leg of the bull run will potentially be much more concentrated, led by the large-cap coins poised to be packaged into financial products.
This Week By the Numbers 📈
Quick Facts:
US 1Q GDP slowed faster than expected
PCE inflation in line with expectations
JP Morgan still predict 23% fall in S&P
Buffet to donate fortune to charity
SpaceX set to be valued at $210bn
BTC activity drops to lowest level in 10 years
BlackRock says Bitcoin is a hedge against geopolitical uncertainty and monetary risk
Someone buys $450m BTC in one transaction
ETH gas hits lowest level since 2016
$820 billion Standard Chartered Bank to establish a spot trading desk for buying and selling Bitcoin and Ethereum
SOL flips ETH again for 24hr DEX volume
Steve Cohen shuts down crypto arm of hedge fund
Coinbase files with CFTC for coin futures
UAE regulations may lead to crypto payment ban
Crypto unmentioned in Presidential debate
Kraken co-founder donates $1m to Trump
NYT calls on Biden to leave race
Odds of Biden dropping out rise to 41%
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Until next week,
Tatiana Koffman
About the Author: Tatiana Koffman
Hi there and thanks for reading! If you stumble upon my newsletter, you will notice that I write about money, economics, and technology. I hold a JD/MBA and spent my career in Capital Markets working across Mergers & Acquisitions, Derivatives, Venture Capital, and Cryptocurrencies. I write to make financial topics more accessible and create equal opportunity for the next generation of investors. I have personally invested in 20+ companies and funds (👉 my portfolio).