“Solana and Cardano next in line for ETFs” — Tether Co-Founder

TL;DR

• Over the previous 6 months Cardano has underperformed, whereas Solana has been labelled an unregistered safety by the SEC — so whereas we’d like to see it, we’re not holding our breath.

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You learn that headline proper.

Tether co-founder, William Quigley (helluva identify), is predicting that Solana and Cardano are subsequent in line for ETFs.

Why? As a result of “Wall Avenue is grasping.”

Which isn’t the worst evaluation we’ve heard earlier than…nevertheless it feels somewhat…off.

Over the previous 6 months, Cardano has underperformed in comparison with different main altcoins, whereas Solana has been labelled an unregistered safety by the SEC.

(As a lot as we’d prefer to see it — Wall Avenue tends to keep away from underperformance and regulatory purple tape).

Whatever the token in query, we’re not pinning any hopes on seeing new crypto ETFs for any of the main crypto initiatives within the close to future.

As a result of to have a ‘spot’ ETF (the place consumers buy shares in a fund, then the fund makes use of it to purchase crypto), the cryptocurrency must first have a futures ETF (the place speculators can wager on the long run worth of the cryptocurrency, with out the fund truly shopping for/holding the cash/tokens).

That alone takes a very good period of time.

Then the SEC will wish to see a yr or extra of buying and selling happen on the futures ETF, to verify its freed from manipulation.

And even then they’ll sit on their arms and reject spot ETF purposes on small technicalities in the event that they so select.

So our guess is:

Sure, most of the main cryptocurrencies may have US-based spot ETFs, which can appeal to new funding and (hopefully) push costs up.

…nevertheless it’s going to take a minute.

Wall Avenue’s greed might want to battle with the SEC’s gradual and begrudging acceptance of crypto.

And if the bear market hits within the subsequent 12-18 months (as anticipated), Wall Avenue’s obsession with crypto will seemingly wane till issues decide up once more.

Persistence is a advantage 🧘