Big Day for Altcoins Tomorrow: Chinese Analysts Addressed the Situation!

The first Solana staking exchange-traded fund based in the US (ETF) will start trading tomorrow. According to Presto Research, this launch will serve as a "litmus test" to gauge institutional investors' interest in altcoin ETFs and staking.

Presto Research analysts Peter Chung and Min Jung stated in a note published today that the market reaction to the Solana ETF will reveal whether the poor performance of Ethereum ETFs traded in the US is due to Ethereum specific problems or a general lack of interest in altcoin ETFs.

"A strong interest in the Solana ETF may indicate that the challenges faced by Ethereum ETFs are specific to the chain and that the investment thesis is not flawed," they stated.

The new ETF will not only provide investors with exposure to the price of Solana but will also generate returns through staking. Chung and Jung pointed out that staking income is a significant factor for institutional investors, stating, "A strong response indicates that returns are valuable to institutional investors." According to analysts, the fund receiving $150 million in inflows in the first month will mean a "solid start."

This development has also increased expectations for the altcoin ETF applications that the US Securities and Exchange Commission is reviewing. Currently, there are spot ETF applications for altcoins such as Solana, XRP, Litecoin, Dogecoin, and Pengu on the SEC's desk.

Bloomberg ETF analysts James Seyffart and Eric Balchunas indicate that they expect a "new wave of ETFs" in the second half of the year. According to Seyffart and Balchunas, the ETFs most likely to receive approval this year will be Solana, Litecoin, and XRP.

Meanwhile, the way for staking ETFs was opened by an important decision made by the SEC in May. The SEC ruled that ETFs offering staking returns do not violate securities laws.

The "Rex-Osprey Solana Staking ETF" issued by Rex Shares and Osprey Funds received SEC approval on June 27 and will start trading on the exchange tomorrow. However, this is not the first ETF based on Solana. In March, Volatility Shares launched two futures Solana ETFs.