ETF (Exchange-Traded Funds), which has alternative cryptocurrency, may not be able to see much absorption among investors even if it is released in the United States this year, investor analysts told Cointelegraph.
The asset manager has submitted 12 applications to launch the US ETF with Altcoin, including Solana (SOL), XRP (XRP), Litecoin (LTC), etc. Analysts expect many people to be approved by US regulations in 2025.
But according to Katalin Tischhauser, Sygnum’s research director, initial demand for Altcoin ETF will be weaker than key cryptocurrencies such as Bitcoin (BTC) and Ether (ETH).
Tischhauser told Cointelegraph, “This bubble is approaching the market in the market, and no one can point out where the demand is from.”
Tischhauser estimates that Altcoin ETFS has a cumulative inflow of $ 1 billion, much lower than $ 100 billion in net assets owned by Bitcoin ETF.
“Bitcoin was waiting for the ETF for some institutional investors and torture to get to ETF. Investors waiting for ETF structure before investing in these cryptocurrencies. ”
Altcoin ETF for US regulatory approval. source: Bloomberg Information
Early adapter
Tischhauser says that an authentic encryption investor who knows about Altcoins, such as SOL, has already already had spot cryptocurrencies through spot cryptocurrency or spot exchange.
Armor said, “If people are interested in Solana or Dogecoin, they must have purchased so far.
Meanwhile, asset managers and institutional investors are likely to have altcoin if they are included in the index funds that passively track the wider encryption market, Tischhauser said.
On February 20, Franklin Templeton launched an ETF that fixed both Spot Bitcoin and ether. It was the second Cryptocurrency IndeF ETF that Asset Manager HashDex launched the NASDAQ Crypto Index US ETF (NCIQ) on February 14th.
This fund can add additional cryptocurrency that only owns BTC and ETH but has a regulatory approval.
It is released in other cryptocurrencies to compare net assets of asset manager Grayscale and measure ETF demand in various cryptocurrencies. Source: Sygnum Bank
ETF benefits
The asset manager who is ready to release Altcoin ETF cites JPMOin’s research and plans to accumulate demand over $ 14 billion for Altcoin ETF.
Federico Brokate, head of 21Shares, said that even Crypto Native investors can benefit by holding Altcoins in ETF wrapping.
Brokate said, “Profit really depends on the core benefits of institutional prices and custody. 21Shaes is waiting for regulatory approval for multiple ALTCOIN ETFs, including funds with SOL, XRP and Polkadot (DOT).
“You can invest in the remaining investment portfolio with a simple click.”
He added that professional asset managers, especially independent registration advisors (RIAS), are also interested in adding Altcoin ETF allocation to differentiate them from their competitors.
Independent RIAS was one of the first agency adoptors of BTC and ETH ETF, and US regulators were approved in 2024.
For new investment products such as Crypto ETF, Matt Horne, head of Fidelity Investments from Digital Asset Strategists, told Cointelegraph.
“There was an early adapter of Bitcoin, and adoption would increase over time for others.”
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