Following the SEC’s approval of Bitcoin (BTC) and Ethereum (ETH) ETFs, numerous applications for altcoins have been submitted. While no approvals have yet occurred, September and October are anticipated as potential months for those approvals. However, a surprising statement from Bloomberg ETF analyst James Seyffart has emerged. 🤯 He predicts that many altcoin ETFs may fail to attract substantial investor capital due to certain factors.
Seyffart’s assessment stems from his observation of low market capitalization and liquidity in some altcoins, particularly those with minimal investment potential. These tokens are likely to be delisted from exchanges eventually. 📉
According to Seyffart’s analysis, the likelihood of these ETFs attracting significant capital inflows is virtually zero for several specific altcoins. He highlights that a high number of applications for the same token awaiting SEC approval further contributes to this concern.
The analyst also cites a total of 92 cryptocurrency ETFs pending before the SEC.
According to the table, Solana (SOL) applications have been most popular with 16, followed by XRP with 15, mixed asset funds with nine, ETH with six, and BTC, Dogecoin (DOGE), and Litecoin (LTC) with four applications each.
Other noteworthy altcoins include Sui (SUI), Chainlink (LINK), Tron (TRX), Avalanche (AVAX), Cardano (ADA), and Polkadot (DOT).
Global asset managers such as BlackRock, Grayscale, Franklin Templeton, VanEck, 21Shares, ProShares, Tuttle Capital, and others are also involved in the ETF application process.
*This is not investment advice.*