ETP: Exchange-traded patience

This is a segment from the Forward Guidance newsletter. To read full editions, subscribe . After the 2024 launches of US bitcoin and ether ETFs, proposals for funds holding solana , XRP and even HBAR surfaced. Others would, if greenlit, diversify across multiple coins. There was also a litecoin ETF plan from Canary Capital Group that the firm amended this week. Nasdaq submitted a 19b-4 form on Canary’s behalf — with some considering this step a positive sign for the product’s fate. Canary CEO Steven McClurg told me he has “a high level of confidence” there’ll be more spot crypto ETFs in the US market this year, declining to get too specific. We’ve heard industry watchers offer their “when, not if” optimism. But as the proposal stack grows bigger on the proverbial SEC desk (we’re in the digital filing age, didn’t you know?), the key question is what exactly it will take for these to get the go-ahead. And with a new SEC administration, are we talking weeks, months or years? Bloomberg Intelligence’s James Seyffart (who spoke with me and Felix recently) noted on X that a litecoin ETF could see the light of day before SOL and XRP offerings. To be clear, i view a Solana or an XRP ETF approval from the SEC as a matter of "when" not "if" at this point but Litecoin *MIGHT* get through first — largely because of a lack of accusations that Litecoin is a security from the SEC — James Seyffart (@JSeyff) January 16, 2025 One of the reasons would be that the SEC — in lawsuits against Coinbase and Binance, for example — has not labeled litecoin as a security . It did however put SOL in that securities category . And you know about the agency’s legal battle with Ripple. If you need a refresher, Casey yesterday detailed the SEC moving forward with an appeal in that case . ETF.com analyst Sumit Roy agreed an LTC ETF may have better odds due to “its simpler use case and history,” avoiding some regulatory scrutiny tied to XRP and SOL. He added that approval in 2025 is possible. “That said, the SEC remains cautious about market manipulation and custody risks, which apply to all crypto ETFs,” Roy told me. Beyond the young US spot crypto products, today is the seven-year anniversary of the Amplify Transformational Data Sharing ETF (BLOK) coming to market. Crypto equity ETFs remain a key way advisers plan to get exposure to the space (see Bitwise/VettaFi survey results below), so I’ll be interested to see what sort of flows this fund notches in 2025. Its assets under management stand just shy of $1 billion. We could see new holdings for BLOK when more crypto- and blockchain-related companies go public. But for now, BLOK co-portfolio manager Dan Weiskopf told us he’s watching miners delving deeper into the AI segment and companies buying/holding BTC. BLOK’s top five holdings are currently Galaxy, Robinhood, Core Scientific, Coinbase and MicroStrategy. The six-spot goes to Metaplanet, a Japan-based MicroStrategy Jr. of sorts that has said it intends to up its bitcoin holdings to 10,000 BTC this year. Start your day with top crypto insights from David Canellis and Katherine Ross. Subscribe to the Empire newsletter . Explore the growing intersection between crypto, macroeconomics, policy and finance with Ben Strack, Casey Wagner and Felix Jauvin. Subscribe to the Forward Guidance newsletter . Get alpha directly in your inbox with the 0xResearch newsletter — market highlights, charts, degen trade ideas, governance updates, and more. The Lightspeed newsletter is all things Solana, in your inbox, every day. Subscribe to daily Solana news from Jack Kubinec and Jeff Albus.