According to CEO Greg King of REX Financial, cryptocurrency ETF issuers should carefully consider which coins to include in their funds, as much of the crypto market is still 'quite murky'.
'Crypto starts to get murky when you move below the top 10, and certainly below the top 20. Therefore, issuers will have to be selective and eliminate quite a bit,' King shared with Bloomberg's ETF IQ program on Monday.
King believes there will not be a 'huge explosion' of ETF filings for many different cryptocurrencies, but predicts there will be 'many funds for each coin'.
ETF issuers are rushing to get approval for a series of crypto funds following the success of the Bitcoin spot ETF, in the context of the U.S. Securities and Exchange Commission (SEC) under President Donald Trump taking a more open stance towards the sector.
REX is currently awaiting approval for meme coin-linked ETFs — those cryptocurrencies that have no intrinsic value aimed at tracking Bonk, Official Trump, and Dogecoin. DOGE is currently the 10th coin in the market by market capitalization.
King assesses Solana as the 'future' of stablecoins.
In early July, REX Financial launched a Solana ETF, which includes staking rewards — payments for those who lock tokens to support the blockchain.
King believes Solana is 'faster and designed for high processing speed', noting that this blockchain has been overlooked as a platform for stablecoins, which are currently predominantly popular on Ethereum.
'Honestly, when I saw the big debate erupt about stablecoins all being built on Ethereum, I thought: This is a major oversight. I believe Solana is really the story of the future when it comes to stablecoins. Many think Solana is the upstart that could overthrow Ethereum. This is a very controversial debate. Perhaps I've just made some friends and enemies by suggesting that.'
Expectations for more ETFs for each type of cryptocurrency.
King also mentioned expectations for more crypto ETFs to be launched in the coming months, believing there will be 'a certain boom'.
'Where in the ETF world do you see the scene of six, eight, ten, twelve companies lined up to launch the same product repeatedly like we've seen with Bitcoin ETFs, then with ETH, and now with Solana. Those numbers keep multiplying, and I think you will continue to see that,' he added.
He also added that Solana is a 'strong candidate' for a spot ETF, emphasizing that it is 'quite interesting as a portfolio investment' due to its direct competition with Ethereum and 'much larger' staking rewards compared to its rival.
Nine Solana ETF applications.
Currently, there are nine issuers that have filed for the launch of a Solana spot ETF, including VanEck, Bitwise, Grayscale, 21Shares, CoinShares, Canary Capital, Franklin Templeton, Fidelity Investments, and a joint fund between Invesco and Galaxy Digital.
The SEC is expected to approve trading in October. Analysts and market bettors predict that the likelihood of these funds being approved is almost certain.
