Spot Bitcoin and Ethereum ETFs Approved

Spot Bitcoin (BTC) and Ethereum (ETH) ETFs, regarded as pivotal for the cryptocurrency sector in 2024, have received approval.

This green light has paved the way for ETF applications for various altcoins, including XRP, Solana (SOL), Litecoin (LTC), Dogecoin (DOGE), and Cardano (ADA).

The cryptocurrency community is keenly awaiting the approval of altcoin ETFs, with top analysts anticipating their likelihood of approval. However, some experts express skepticism about their potential impact.

Katalin Tischhauser, Head of Research at Sygnum Bank, stated that while the approval of altcoin ETFs is almost certain, investor interest might be lackluster, as initial demand is expected to be lower compared to major cryptocurrencies.

> “There are many altcoin ETF applications, but initial demand for altcoin ETFs will be weaker than for Bitcoin and Ethereum.”
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> “It is almost certain that altcoin ETFs will be approved in the market, but no one can show where the demand will come from.”
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> “At this point, even if altcoin ETFs are approved, they will see limited demand from retail investors. Many are likely already holding altcoins directly.”

Tischhauser estimates cumulative inflows into altcoin ETFs to be between $100 million and $1 billion.

Morningstar manager Bryan Armour echoed this sentiment, suggesting that interest in altcoin ETFs will be significantly lower than in Bitcoin and Ethereum. He remarked, “For Bitcoin, some institutional investors and advisors have been waiting for an ETF. However, I do not expect the number of investors waiting for ETFs for altcoins to be this large. If institutional investors were interested in Solana or Dogecoin, they would have bought them already.”

Conversely, JPMorgan estimated that cumulative demand for altcoin ETFs could surpass $14 billion.

This is not investment advice.