Bloomberg Analyst: After the Launch of Ethereum-ETF on the Solana-ETF Queue
Date: 2024-07-17 Author: Gabriel Deangelo Categories: BUSINESS
According to Bloomberg analyst Eric Balchunas, after the launch of an Ethereum-based exchange-traded fund (Ethereum-ETF), the next step will be the emergence of Solana-ETF. This process, according to Balchunas, will cause a “dam breaking” effect, which will lead to the mass adoption of new cryptocurrency ETFs.
Launch of Ethereum ETF
The official launch of Ethereum-ETF is scheduled for July 23. In anticipation of this event, the US Securities and Exchange Commission (SEC) issued final instructions to issuers. The launch of the Ethereum ETF is expected to have a significant impact on the price of the asset, similar to what happened with Bitcoin. Recall that after the launch of the Bitcoin ETF in January, the price of BTC reached a record high of $73,000 just three months later.
Balchunas is confident that after the launch of Ethereum-based products, Solana-ETF will follow. He noted: "Keep in mind that after launch... I'm sure there will be ETH-based products added, then Solana-based products, and then... it will probably never end. The dam will be broken." The announcement underscores the belief that the cryptocurrency ETF market will rapidly grow to include a diverse portfolio of assets.
Market and demand for Solana-ETF
Analysts at GSR Markets also believe Solana is the most likely candidate for the next ETF. In their opinion, the demand for SOL has increased significantly, as this token “has gained a foothold in the big three cryptocurrencies.” The increased attention to Solana is due to its technological advantages and active developer community.
The launch of the Solana-ETF, like the Ethereum-ETF, is likely to have a significant impact on the market. These developments may lead to further increases in the prices of the respective cryptocurrencies and increase their attractiveness to institutional investors.
