The Securities and Exchange Commission, which streamlines the approval process for crypto exchange trading products (ETPs), could cause a surge in new products, but that doesn’t guarantee their success, Crypto executive warns.
“The adoption of a general listing standard that could come as early as October will likely lead to a lot of new crypto ETPs. This is intuitive, but is also supported by the history of ETFs,” Bitise’s Chief Investment Officer Matt Hougan said in a report Monday.
However, Hougan warned that the launch of crypto ETFs should not be confused with new hype for cryptocurrency.
There is no guarantee that Crypto ETFS will succeed “merely exist”
“The mere existence of crypto ETP does not guarantee a large influx; it requires a fundamental interest in the underlying assets,” says Hougan.
“I think ETPs built on assets like Bitcoin Cash will have a hard time attracting the flow unless the assets themselves find a new life,” he added.
However, Hougan emphasized that when ETFS launches ETFS when it “starts the fundamentals begin to change”, it will place products to gather.
“There’s this bubble-blown excitement in the market about these ETFs coming, and no one can point to where the substantial demand is coming,” Sygnum’s research director Katalin Tischhauser told the Cointelegraph in February.
This week, funds trading in two new Altcoin Exchanges will be launched in the US, with XRP (XRP) and Dogecoin (Doge).
On July 3, the first US Solana (SOL) staking ETF said Bloomberg ETF analyst James Seyfert was a “sounding start to the trade.”
Currently, the SEC is reviewing Spot Crypto ETFs on a case-by-case basis. Issuers should submit detailed proposals that show that the underlying market is sufficiently fluid and that it is resistant to operations among other requirements.
The new process “is essentially guaranteed” compliant crypto ETFs
Reviews can take up to 240 days, but there is no guarantee of approval.
Related: Spot BTC ETF attracts $642 million, while ETH adds $406 million amid “increasing confidence”
Under the new process the SEC is working on, the application is “effectively guaranteed” if it meets the exact requirements, Hougan said. “That’s also fast. The application will be approved within 75 days.”
Bitfinex analysts said on August 26 that they will not be able to see the wide, oversized gathering until Altcoins receives approval for a cryptographic ETF that exposes the risk curve further down.
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