After Bitcoin (BTC) and Ethereum (ETH) received approval to launch exchange-traded funds (ETFs) in the United States, a series of applications began to establish similar funds for a large number of alternative cryptocurrencies (altcoins).
Among these currencies, Ripple (XRP), Solana (SOL), and Litecoin (LTC) are considered the most likely to receive approval, and estimates suggest that Solana may be the first to obtain approval.
💬 According to a report by "The Block," analyst Vetle Lunde from K33 stated that investors can take advantage of the expectations regarding upcoming ETFs for alternative currencies.
👈 "Lunde" recommended a strategy based on:
Long Position for Solana (SOL)
Short Position for Litecoin (LTC)
This is in light of the expectations for ETF approval for those currencies.
📌 He explained that one of the main factors in the previous approval of Bitcoin and Ethereum funds is the "Grayscale effect."
He pointed out that Grayscale has the ability to expand its traded funds, and said:
> "Unlike XRP and Dogecoin, Grayscale's funds for both Solana and Litecoin are publicly traded, making them the most likely to receive ETF approval."
He added that:
Grayscale's Solana fund faces low liquidity risks.
While the Litecoin fund faces higher liquidity risks.
Therefore, he sees that "trading by buying Solana and selling Litecoin after the launch of ETF funds would be an attractive strategy."
🪙 Finally, K33 revealed its intention to raise $8.9 million through a share issuance, aiming to purchase 1,000 Bitcoins for its treasury.
> Note: This information is not investment advice.