A significant surge in interest surrounding cryptocurrency exchange-traded funds (ETFs) is on the horizon, as Bitcoin and Ethereum-linked funds successfully garnered Wall Street’s investment approval. The Depository Trust & Clearing Corporation (DTCC) has recently listed Fidelity’s proposed Solana ETF (FSOL), alongside Canary Capital’s planned XRP ETF (XRPC) and Hedera ETF (HBR). This development has ignited considerable excitement among investors who are eager for a potential launch.
In response to the growing buzz, the price of Solana saw an impressive increase of 7% within a 24-hour period. Meanwhile, both Hedera and XRP experienced modest gains. The overall cryptocurrency market cap has bounced back, exceeding the $4 trillion mark, with most indices reflecting positive performance. The Fear and Greed index, which measures market sentiment, remains in the “neutral” zone but has shown a slight recovery from the fear territory.
The addition of these three ETFs to the National Securities Clearing Corporation’s roster on September 11 indicates that they are now eligible for clearing and settlement, pending regulatory approval. However, it’s important to note that this is not a definitive endorsement by regulators; the Securities and Exchange Commission (SEC) must still grant approval before any trading can commence. Bloomberg ETF analyst Eric Balchunas shared insights stating that although a DTCC listing is a routine procedure, historical data implies that most tickers listed on the system eventually progress to launch. The SEC has been known to delay its rulings, having postponed decisions on altcoin ETFs several times this year. Most recently, in August, the agency extended its timeline for Canary’s XRP ETF, with decisions expected between October 18 and 23, while the Hedera ETF decision has been delayed until November. Fidelity’s Solana ETF ruling has also been pushed back to October.
As anticipation builds, Trump Media & Technology Group has announced plans for five new “Truth Social Funds” ETFs, aiming to capture themes such as American defense, energy security, and red-state real estate. These shares are slated for listing on the NYSE Arca later this year.
Amidst this ETF frenzy, existing crypto products continue to attract significant investment. US spot Bitcoin ETFs saw net inflows of $553 million on September 11, marking their fourth consecutive day of positive returns. Bitcoin’s price jumped back to approximately $115,000 after overcoming a period of selling pressure, with its 24-hour trading volume climbing by 5% to reach $55 billion. Ethereum ETFs also reported net inflows of $113 million, extending their positive run to three sessions. Ethereum’s price rose by over 2% in the same time frame, trading at an average price of $4,523.
As the cryptocurrency landscape evolves, the financial community will undoubtedly keep a close eye on these developments, which may shape the future of crypto investment strategies.
