In general, there are high expectations that these investment funds will be approved.
The arrival of these cryptocurrencies to Wall Street will increase its visibility in the market.
The United States Stock Exchange and Securities Commission (SEC) is located in the final deliberation phase on the funds quoted in the stock market (ETF) of Solana (Sol) and Litecoin (LTC).
With the term closer and closer, the expectation that both products obtain green light awakens euphoria among investors.
If the sec approves these regulated products, Sol and LTC will get direct access to Wall Street, which could expand their visibility among institutional investors. In addition, its operation, similar to the purchase of traditional shares, would facilitate the incorporation of capital into the market of these cryptocurrencies.
But let’s go in parts to analyze what happens to each asset. In the case of Litecoin, the SEC has time until October 2 to approve or reject the proposals presented by Canary Capital and Grayscale.
The approval of an ETF will have a direct impact (which can be positive or negative) on its quotation. Due to the functioning of these financial instruments, the companies that manage them must acquire the underlying asset to support their actions, as explained by cryptootics.
That is, if there is high demand for ETFs, managers must go to the market to buy more LTC. This, by law of supply and demandwill make the price of the asset rise.
According to James Seyffart and Eric Balchunas, Bloomberg Intelligence analysts, there is a 95% probability that the next ETF approved by the SEC is that of Litecoin.
In the case of Solana, it should be clarified that on July 2 an ETF of futures debuted based on this asset, managed by Rex Shares and Osprey Funds.
The background called Rex Osprey Sol Staking, which is identified with the SSK symbol, began operations in the Chicago options (CBOE). This ETF offers investors the possibility of investing directly in the sun’s price, while generating additional income through the cryptocurrency’s own staking. This is the first financial product of its kind that has this mechanism.
However, the SEC must still respond to the requests made by Franklin Templeton, Grayscale, Vaneck, 21Shares, Canary Capital and Bitwise. The agency has time until October 10.
In this case, Bloomberg Intelligence analysts predict that the ETFs of Sol could receive approval after LTC.
It is important to clarify that the SEC, in both cases, can make a decision before the official terms mentioned above.
