Cryptocurrency ETF issuers should carefully consider which cryptocurrencies to select for their funds, as many crypto assets in the market carry risks, said Greg King, CEO of REX Financial.
In an interview with Bloomberg's ETF IQ, King stated, 'There is indeed a considerable risk in the cryptocurrency market outside of the top ten by market cap.'
King does not expect a large number of cryptocurrency ETF applications but predicts multiple funds tracking each cryptocurrency.
After the success of the Bitcoin spot ETF, ETF issuers are rushing to apply for licenses for various cryptocurrency funds, with the SEC under Trump showing a friendlier attitude towards the field.
REX is awaiting approval for ETFs related to meme coins (cryptocurrencies without intrinsic value), such as Bonk, Trump, and currently the tenth-ranked Dogecoin by market cap.
King praises Solana as the future of stablecoins.
At the beginning of July, REX launched a Solana-related ETF that includes staking rewards, providing returns for those who lock tokens to support the blockchain.
King believes Solana is a high-speed blockchain that has been used for stablecoins and is 'faster and more suitable for high processing speeds.' He pointed out that when stablecoins are primarily built on Ethereum, 'it is clear that there is a huge omission.'
Many believe Solana will gradually replace Ethereum, although this is a controversial topic.
More ETFs are expected for each cryptocurrency.
King also expects to see more crypto ETFs launched in the coming months, believing this phenomenon will experience 'explosive growth.'
He said that it is unprecedented for there to be as many fund applications in the ETF market as there are for Bitcoin, Ethereum, and even Solana.
Currently, nine issuers have applied to launch the first Solana spot ETF, and the SEC is expected to approve its trading in October.
