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Bloomberg analysts update likelihood of ETF approval to ‘90% or greater’ following SEC’s request for revised submissions.
Bloomberg analysts have significantly raised the probability of U.S. regulators endorsing a new series of cryptocurrency exchange-traded funds, citing a more favorable approach from the Securities and Exchange Commission (SEC).
On June 20, Bloomberg senior ETF analysts Eric Balchunas and James Seyffart stated that they now perceive a “90% or higher” likelihood that a diverse array of crypto ETFs will receive regulatory endorsement.
Altcoin funds
This updated prediction follows what the analysts characterized as positive discussions between the SEC and asset managers aiming to broaden their offerings beyond Bitcoin.
They also suggested that the SEC likely views cryptocurrencies such as Litecoin, Solana, XRP, Dogecoin, and Cardano as commodities, a designation that typically places them outside the direct jurisdiction of the commission as securities.
The increase in optimism follows the SEC’s recent request for several issuers pursuing spot Solana ETFs to revise their filings with more explicit information regarding in-kind redemptions and the potential allowance of staking.
This request led some firms that had not yet submitted applications for Solana ETFs to expedite their filings last week.
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The modifications requested, submitted in mid-June, indicate that the SEC is actively evaluating the structure and mechanics of these funds, further bolstering expectations for future approval. The regulator plans to respond within 30 days, heightening anticipation of approval within the next four to five weeks.
ETF performance
Crypto ETFs are anticipated to become a staple of the financial sector following record capital inflows into spot Bitcoin ETFs.
BlackRock’s iShares Bitcoin Trust, trading under the ticker IBIT, exceeded $70 billion in assets earlier this month, less than a year after its inception. The product’s steady daily inflows have positioned it as one of the fastest-growing ETFs in U.S. history.
In contrast, similar products tracking Ethereum have experienced slower adoption. Although Ether ETFs were launched last July, blockchain analytics indicate that many investors are still at a loss compared to their initial investment.
With increasing momentum, fund issuers such as Franklin Templeton have submitted proposals for ETFs linked to other crypto assets like XRP and Solana. These applications are currently open for public commentary as the SEC considers its next steps.
While Balchunas and Seyffart anticipate approvals, they warned that final confirmations and market launches could still be several months away.
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