While Bitcoin has been fluctuating in recent days, altcoins have been on the offensive. While investors thought that the altcoin season had begun, Grayscale filed a spot Solana ETF application.
While Grayscale’s SOL move has increased expectations and speculations that various altcoin ETFs will be approved, the CEO of leading exchange Bitget said that the challenges of getting altcoin spot ETFs approved continue.
Speaking to Bloomberg TV, Bitget CEO Gracy Chen explained the hurdles in gaining approval for altcoin ETFs such as Solana (SOL), XRP, and Dogecoin (DOGE).
Stating the lack of futures ETFs as the first reason, the famous CEO emphasized that futures ETFs were approved before spot ETF approvals in Bitcoin and Ethereum.
Chen said that the lack of futures ETFs for altcoins like SOL, XRP, and DOGE remains a hurdle for approval, compared to the case of BTC and ETH.
The second reason is that some regulators still consider tokens like SOL to be securities, Chen said, and these discussions could negatively affect approval processes.
The famous CEO finally stated that most altcoins have a decentralized structure as much as BTC and ETH, and that altcoins are relatively more susceptible to manipulation and that the risk of market manipulation is higher in altcoin ETFs compared to BTC and ETH.
Bitget CEO Gracy Chen said that Bitcoin’s fluctuations near the $100,000 level are short-term and reflect a strong “arbitrage” sentiment among investors.
According to the famous CEO, although cryptocurrency regulations in the US tend to be more positive, investors prefer to make profits from current prices due to the existing uncertainties. This causes the BTC price to fall. However, investors see price declines as buying opportunities as they expect more increases. This cycle among investors causes the price to fluctuate at certain levels.
*This is not investment advice.
