Current ETF outflows indicate caution among market participants.
After the approval of Spot Bitcoin $94,822 and Spot Ether ETFs last year, market participants are looking forward to an expanded list of crypto ETFs in the United States. Speculation suggests that approvals for XRP and Solana $188 ETFs could occur by 2025, following a flurry of applications submitted in November.
ContentsNew Wave of Crypto ETFs in the U.S.Trends in Existing Crypto ETF Flows New Wave of Crypto ETFs in the U.S.
According to a Reuters report, issuers like VaEck, Canary Capital, and 21Shares have submitted 16 applications. These applications aim for the approval of exchange-traded products that track crypto indices or tokens such as XRP and SOL.
Two primary reasons contribute to this new wave of ETFs. First, the replacement of Gary Gensler with Paul Atkins as SEC Chairman can lead to more crypto-friendly regulations. While Gensler was seen as an anti-crypto figure, Atkins’ appointment may pave the way for supportive regulatory measures.
Trends in Existing Crypto ETF Flows
Expectations for new crypto ETFs have had mixed effects on SOL and Ripple $2’s XRP. SOL prices increased by 0.88% to $191.04 in the last 24 hours, despite a 5.29% drop in trading volume. Similarly, XRP rose by 0.76% to $2.32, resulting in a 0.80% market cap increase, but trading volume fell by 31.08%. Current market sentiment for XRP is neutral, suggesting these price movements are short-term reflections.
Despite expectations for XRP, Litecoin, HBAR, and SOL, significant outflows have been observed in Spot Bitcoin and Spot Ether ETFs recently. Fidelity’s FBTC led the outflows in Spot Bitcoin ETFs with a massive $258.7 million exit, while Ark’s ARKB saw $148.3 million in outflows. In Spot Ether ETFs, Fidelity’s FETH topped the outflows with $147.7 million, followed by Grayscale’s ETHE and ETH ETFs with $8.3 million and $3.4 million, respectively.
The anticipated wave of new crypto ETFs could significantly influence overall market dynamics. Supportive regulations from the SEC’s new chairman may accelerate the ETF approval processes. However, the outflows from current ETFs serve as an important indicator of investor confidence in the market.
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