- Avalanche and Aptos Next for ETF Approval
- Both tokens have seen significant price declines over the past few days.
Expectations surrounding the ETF approval and ruling helped BTC and ETH prices. However, the price surge is likely not limited to blue chip coins.
In fact, Avalanche (AVAX) and Aptos (APT) have been cited as cryptocurrencies that could join the club if companies choose to submit.
Will Avalanche and Aptos be next?
According to data shared by GSR, Avalanche and Aptos are more likely to receive ETF approval if the Solana ETF application is approved.
GSR’s research shows that regulators such as the SEC are showing signs of being open to cryptocurrency spot ETFs that meet certain criteria. This is a significant change compared to previous years.
Decentralization and potential investor demand are considered key factors. A higher degree of decentralization, meaning a network not controlled by a single company, is likely to be viewed favorably for ETF approval. Metrics such as Nakamoto coefficient, staking requirements, and CCData governance rating can help you evaluate this.
Among other cryptocurrencies, Avalanche and Aptos are more likely to receive ETF approval due to their relatively decentralized structure, according to GSR.
Even if a diversification score is high, an ETF is unlikely to be viable if there is not enough investor interest. Therefore, issuers will consider both factors when deciding which cryptocurrencies to include in an ETF.
ETF approval will make Avalanche and Aptos more accessible to mainstream investors who are hesitant to buy cryptocurrencies directly from an exchange, which could significantly increase their user base and adoption.
However, at the time of writing, things are looking grim for both protocols. Daily activity for both protocols and exchanges has dropped significantly over the past few days. Furthermore, Total Value Locked (TVL) has declined across the board, suggesting that the protocols have not been performing well in the DeFi space.
Source: Artemis
What happens to the token?
The price movements of these two tokens have fallen significantly over the past few months, showing signs of a bearish trend.
However, while sentiment for APTOS has fallen significantly over the past few days, sentiment for AVAX has surged.
Realistic or not, AVAX market cap in BTC is:
Source: Santiment