In mid-September, a wave of excitement surged through the global cryptocurrency community as Fidelity’s Solana ETF (FSOL), Canary’s HBAR ETF (HBR), and the XRP ETF (XRPC) surfaced on the Depository Trust & Clearing Corporation (DTCC) website. This development represents an important milestone in the ongoing efforts to introduce cryptocurrency exchange-traded funds (ETFs) to the U.S. financial market.
The DTCC, a pivotal player in post-trade processing in the United States, oversees the clearing and settlement of various financial transactions, including ETFs. This recent listing has spurred speculation about the future of these specific ETFs, though critical questions about their approval loom large.
Market analyst Wu Blockchain noted that the appearance of FSOL, HBR, and XRPC on the DTCC site is likely part of the preparatory phase for launching these new ETFs. Previous listings have included VanEck’s VSOL ETF and a Litecoin ETF from Canary Capital.
As of now, the three altcoins—Solana (SOL), Hedera (HBAR), and XRP—have achieved new monthly highs, signaling a favorable sentiment among short-term traders. The increased interest and positive price momentum for these assets could pave the way for strong support from their respective ecosystems.
Investor optimism is buoyed by the possibility of coordinated approvals among ETF providers, a scenario that could amplify the impact of these tokens and further bolster their associated communities. Should the approvals materialize in the fourth quarter of this year, it might extend the ongoing altcoin season, with considerable benefits for the associated networks.
Nonetheless, industry experts caution that a DTCC listing does not equate to approval from the Securities and Exchange Commission (SEC) or the completion of other necessary regulatory steps. “The DTCC listing of these ETFs doesn’t mean anything from a regulatory standpoint. It’s all on the SEC,” said Nate Geraci, co-founder of The ETF Institute.
Eric Balchunas, an ETF analyst at Bloomberg, echoed these sentiments, pointing out that while numerous tickers might be listed, very few ever proceed to launch. The SEC has previously delayed decisions surrounding Canary Capital’s HBAR ETF and has also postponed rulings for Solana and XRP ETFs filed by Franklin Templeton.
Despite these hurdles, market sentiment remains bullish, with stakeholders giving the SEC a 90% likelihood of approving some of these ETFs before the year’s end. James McKay, founder of McKayResearch, added that over 90 crypto ETFs are currently pending SEC approval. He forecasts that if the current pace continues, ETFs for virtually all major cryptocurrencies ranked in the top 30-40 could be approved within the next year, even amid potential delays.
This ongoing narrative reflects both cautious optimism and inherent uncertainty within the cryptocurrency landscape, as investors and analysts closely monitor regulatory developments that could shape the future of digital asset investments.
