Whereas the US authorities shutdown is on the agenda of the Bitcoin and cryptocurrency markets, altcoin ETFs awaiting approval are additionally going through uncertainty.
At this level, consultants state that choices concerning altcoin ETFs will most definitely not be introduced in the course of the US authorities shutdown, and that approval could be very unlikely.
Whereas uncertainty surrounding ETFs persists, Vetle Lunde, Head of Analysis at K33 Analysis, outlined his technique for Solana (SOL) and Litecoin (LTC) ought to the SEC approve altcoin ETFs.
Lengthy on Solana, Brief on Litecoin!
At this level, Lunde famous that Solana is much less prone to be affected by potential provide stress from Grayscale in comparison with Litecoin.
Lunde pointed to variations within the buying and selling histories of Grayscale’s Solana and Litecoin trusts, noting that buying and selling “lengthy SOL and quick LTC” could possibly be tempting if altcoin ETFs have been to launch.
Grayscale’s Solana belief, which started buying and selling in 2023, holds solely 0.1% of the circulating Solana provide and has by no means traded at a reduction, in keeping with Lunde. This implies it might face minimal promoting stress after changing to an ETF. A number of Solana ETF purposes and large-scale demand for digital asset treasury methods are additional supporting the SOL value.
However in distinction, the Grayscale Litecoin belief controls 2.65% of LTC’s circulating provide, and the belief has repeatedly traded at a big low cost, much like earlier GBTC and ETHE conversions.
Given the comparatively small variety of ETF purposes for Litecoin in comparison with Solana, Lunde mentioned he believes a “lengthy Solana/quick Litecoin” technique could be fairly engaging with the simultaneous itemizing of ETFs.
“We consider lengthy SOL and quick LTC are engaging if the Solana and Litecoin ETF launches happen concurrently.
Given LTC’s historical past of reacting strongly to optimistic information, we’ll wait just a few days after launch earlier than taking motion.”
*This isn’t funding recommendation.
