Altcoin ETF Approval Challenges Discussed by Bitget CEO

Altcoin ETF Hopes Intensify with Grayscale’s Move

Grayscale’s application for a Solana ETF raises expectations for more altcoin ETFs

Amidst recent price volatility in Bitcoin, altcoins have been gaining momentum, leading many to believe that the much-anticipated altcoin season is upon us. However, Bitget CEO Gracy Chen has highlighted the uphill battle that altcoin ETFs face in gaining regulatory approval.

Obstacles in the Approval Process

Lack of futures ETFs and regulatory hurdles pose challenges for altcoin ETF approval

Chen pointed out that the absence of futures ETFs for altcoins like Solana, XRP, and Dogecoin is a major barrier, especially considering that Bitcoin and Ethereum had futures ETFs approved before their spot ETFs. Furthermore, some regulators still classify tokens like Solana as securities, further complicating the regulatory landscape and potentially delaying approval.

Risks and Vulnerabilities of Altcoins

Altcoins, despite sharing a decentralized structure with Bitcoin and Ethereum, are perceived as more susceptible to market manipulation. This increased risk factor makes it harder to convince regulators to approve altcoin ETFs compared to those for BTC and ETH.

Bitcoin’s Short-Term Fluctuations

CEO’s Perspective on Bitcoin’s Price Movements

Chen views the fluctuations around the $100,000 mark in Bitcoin as short-term and driven by arbitrage sentiment. She explains that while US cryptocurrency regulations are improving, investor uncertainty leads to price dips, which some see as buying opportunities. This cycle of buying on dips and speculating on future growth contributes to Bitcoin’s ongoing price volatility.