A significant surge in interest surrounding cryptocurrency exchange-traded funds (ETFs) is on the horizon, as Bitcoin and Ethereum-linked funds receive the necessary investment endorsements from Wall Street. Notable developments include Fidelity’s proposed Solana ETF (FSOL) and Canary Capital’s plans for both an XRP ETF (XRPC) and a Hedera ETF (HBR), which recently made their appearance on the Depository Trust & Clearing Corporation (DTCC) website. This announcement has ignited considerable excitement within the investment community, anticipating the potential for these products to hit the market.
In response to this news, Solana’s value experienced a notable increase of 7% over the last 24 hours, while marginal gains were recorded for both Hedera and XRP. As a result, the overall cryptocurrency market capitalization rebounded past the $4 trillion threshold, reflecting bullish sentiment across the board. The Fear and Greed index, while still in the “neutral” zone, moved away from the fear category, suggesting a shift in investor sentiment.
The DTCC made the announcement on September 11, adding these three ETFs to the National Securities Clearing Corporation roster, thereby qualifying them for potential clearing and settlement, contingent upon regulatory approval. It’s important to note, however, that this does not imply immediate approval from regulators. The U.S. Securities and Exchange Commission (SEC) must give its stamp of approval before trading can commence.
Bloomberg ETF analyst Eric Balchunas pointed out via social media that although the DTCC listing is a procedural step, historical patterns indicate that the majority of tickers that attain a spot within the system eventually make it to launch. Despite the procedural advancements, the SEC has a history of delaying decisions regarding altcoin ETFs and has postponed its ruling on Canary’s XRP ETF to a timeframe between October 18 and 23 this year. Additionally, the SEC has delayed its decision regarding Canary’s Hedera ETF until November and has pushed back the timeline for Fidelity’s Solana ETF into October.
In a related development, Trump Media & Technology Group announced its ambition to introduce five new “Truth Social Funds” ETFs. These funds are centered around themes such as American defense, energy security, and real estate in politically conservative regions, with plans for them to list on the NYSE Arca later this year.
Meanwhile, existing cryptocurrency products have seen a steady influx of investments. On September 11, U.S. spot Bitcoin ETFs attracted $553 million in net inflows, marking a continuous growth streak for four consecutive days. Following this momentum, Bitcoin’s price climbed to reclaim the $115,000 mark, rebounding from days of selling pressure. Its 24-hour trading volume rose by 5%, now standing at $55 billion.
Ethereum ETFs also demonstrated strong performance, logging $113 million in inflows and extending their positive momentum to three sessions. Ether’s price increased by more than 2% in the last 24 hours, averaging $4,523 at the time of reporting.
Investors are keenly watching these developments as the cryptocurrency landscape continues to evolve, with the potential introduction of new ETFs further shaped by regulatory decisions.
