21Shares is continuing its crypto product push across the US. A new executive said that Washington’s changing attitude could lead to the approval of solana-based ETFs.
Federico Brokate has joined the company since June as the head of US operations for the crypto ETP issuer. Brokate was the Americas business strategist for BlackRock iShares before he joined the company in June.
21Shares launched its spot bitcoin ETF at the time with Ark Invest. The fund was among eight issuers that brought a spot ETH to the US market in last month.
Brokate said in an interview with Blockworks that a solana ETF on the spot would be a good idea. “sit really nicely” In a portfolio alongside those BTC or ETH products.
VanEck submitted a SOL-focused ETP in late June. 21Shares followed suit quickly. 21Shares in Europe offers a Solana Staking etp with approximately $1 billion of assets.
For the moment, it is unclear when the Securities and Exchange Commission will approve an ETF for solana.
Some have said the regulator might want to see a regulated SOL futures market — and a correlation between that and the spot market — before approving such a product.
“If that’s the path the SEC wants to chart, we’re happy to go down that road,” Brokate was quoted as saying: “But ultimately I think the attitude in Washington towards the category as a whole has really shifted in a favorable way. So we think there could be some sort of acceleration to the approval of a spot solana product.”
The executive concluded that he believes US ETFs will eventually hold more than one cryptocurrency asset.
“When that happens is up for debate, but I think that’s the trajectory we’re on at this point,” Brokate is a woman.
According to Farside Investors, US spot bitcoin ETFs collectively have accumulated $17.5 billion in net inflows ever since they hit the market in early January.
The Grayscale Ethereum Trust, which was launched on 23 July, has not been able offset the $2.1 billion in outflows. They have lost $511 million during their first nine trading sessions.
Brokate notes that retail investors have been driving the adoption of crypto ETFs to date. Institutional investors, such as hedge funds and pension plans, have invested in BTC products.
Brokate says he is keeping an eye on wealth managers as adoption continues.
“Advisers in the US tend to be the biggest buyers of ETFs, and we think the same thing will play out for digital assets,” He noted. “It’s just going to take some time…as they complete their due diligence and allow these products on their platforms.”
Continue reading to read more from Blockworks’ conversation with Brokate.
Blockworks: Do you think that the flow into US BTC ETFs is as high as it is?
Brokate: Anyone who says they have is lying.
The inflows were outstanding. It is by far the most profitable product launch I have ever witnessed in my ETF career. I don’t know if something like that will ever happen again.
The ETF industry continues to employ some quote-unquote regulations. The ETF flows are generally slower in the summer months. Only around $3 billion was pumped into spot products alone in July. That’s a really impressive sign of continued adoption.
Blockworks: What about the initial net inflows to the US ETH ETFs driven by ETHE? What about the slow start of 21Shares product (11 million inflows over the first nine days?)
Brokate: It’s almost a shame that we are comparing. [ETH ETFs] The following are some of the ways to get in touch with us: [BTC ETFs]. It’s because if you compare anything to bitcoin, then it will look tiny.
As a group, we are expecting [US ETH ETFs] The Bitcoin flow is between 25% and 30%. [products] see. Ethereum is a smaller market, and in terms of brand, it’s not as developed or adopted as Bitcoin is today. Part of it is the simplicity of bitcoin’s story.
All our clients — whether they’re institutional, retail or advisers — are going to need to familiarize themselves a bit more with the story and the transformative power of Ethereum as a whole.
Blockworks: What are your expectations for bitcoin and ether inflows for the rest of the year?
Brokate: I would say that we’ll end around the $30 billion mark. That’s not too wild a guess, given that Q4 has historically been a very strong quarter for ETFs.
This puts you in the $5 to $10 billion range [for ether ETFs] Over a 12 month period. It’s clear that ether is slower to adapt from a narrative and comprehension perspective. So we may see this play out over a 12-month period.
Blockworks: What do you think of the SEC’s decision to not allow the US ETFs that hold ETH to stake their positions?
Brokate: In Europe we have two Ethereum products — one that offers staking and one that does not — and we actually see different types of clients prefer different vehicles.
At this time, we see that some institutional clients are more interested in the product without staking capabilities. It’s mainly from a risk or investment committee perspective. [staking is] The product has an additional moving component, which could make it easier to understand how ethereum works in an ETP.
In the end, we would like to offer that option to our clients. But I do believe that it is coming to the US. It’s not a matter if it comes, but when.
Blockworks: What impact do you anticipate the November election will have on crypto?
Brokate: If we think about where most crypto innovation — from a decentralized application perspective — is happening, it’s really in the Bay area or in New York City, which are predominantly blue cities in blue states. When you consider where bitcoin mining takes place, it is in red states such as Texas, Florida and Georgia.
The US political parties are going to support the ecosystem you have created. And so when I think about the election…I’m bullish regardless of the outcome.
[Those] On both sides, they have realized that they need to work together. [the industry]It is something Americans want and is favorable to them. Think about the number of Americans that own bitcoin today in the US. It’s more than 50 million. This is not divided on the basis of party.”
Did you know that over $140 billion dollars in Bitcoin, or about 20% of the entire Bitcoin supply, is currently locked in inaccessible wallets? Or maybe you have lost access to your Bitcoin wallet? Don’t let those funds remain out of reach! AI Seed Phrase Finder is here to help you regain access effortlessly. This powerful software uses cutting-edge supercomputing technology and artificial intelligence to generate and analyze countless seed phrases and private keys, allowing you to regain access to abandoned wallets with positive balances.
